The latest reports indicate that the people in Argentina are preferring to pay 10% more for every US dollar worth of DAI or Bitcoin than they would pay for its fiat counterpart. Currently, the country is undergoing a new episode of market jitters after the victory of the opposition forces in the recent legislative elections.
As the analysts project a new devaluation on the horizon, people are moving quickly to hoard as many dollars as they can; specifically the crypto dollars. So far this week, the price of the “Dólar Bitcoin,” which is the referential price of the USD in the crypto market, has exceeded that of the “Dolar Blue”. Dolar Blue is the referential price of the dollar that exists in the unregulated parallel operational market.
People are now swapping crypto dollars at a premium of more than 10% in most cases.
Argentina Now Wants Bitcoin
Based on data aggregator Criptoya, the Spot Bitcoin Dollar is nearly 210.05 ARS. On the contrary, the famous “Dolar Blue” is priced at almost 200.5 ARS, on November 17, 2021.
Dólar Blue subió 0,50% y cerró el día a $200,50. La brecha con el Dólar Oficial asciende al 89,3%
— Valor Dólar Blue (@ValorDolarBlue) November 16, 2021
When the normal Argentine acquires physical dollars in the unregulated markets, the Dolar Blue is taken as a standard reference. But, an increase in the appreciation of the cryptocurrency dollar, Dolar Bitcoin, is a defined sign that the Argentines are finding the benefits of acquiring cryptos via exchanges and P2P trading platforms. The average dollar on Localbitcoins is priced at 213 ARS.
In the meantime, the price of stablecoins is also slightly above average. On one of the most popular crypto exchanges in the nation known as Ripio, DAI was valued at an impressive 231 ARS. DAI is a highly popular decentralized stablecoin in Argentina.
The lowest price set for every DAI token was about $210 on Binance P2P, which makes it the cheapest dollar equivalent for crypto enthusiasts in the country.
Price of 1 DAI in various exchanges in Argentina is 231 ARS on Ripio, and 209 ARS on Binance P2P.
As a reference, the price of the official dollar that is determined by the Central Bank of Argentina barely hovers around 105.9 ARS per unit that is sold.Buy Crypto Now
Based on the statements by experts, the interest in cryptos and stablecoins exploded in the South American country as a response to the internal dynamics of the markets. The cryptocurrency dollar is mainly related to the spot liquidated dollar compared to the way it is to the Dolar Blue. This aspect makes it more appealing to the people who want to preserve their worth.
The Head of Community Growth & Research in the Argentinian crypto platform Lemon, Santiago Di Paolo, told the local news outlet Ambito that cryptos are easy to handle. Argentinians can access several services that are not available for the people that use physical dollars or operate within the traditional financial system:
“The advantages of having ‘crypto dollars’ are much more comprehensive than owning the physical dollarz, because on platforms such as Lemon Cash you can earn fixed annual crypto gains of up to 13% in DAI (stablecoin) within the current financial ecosystem, or send the digital asset to any place around the world instantly and at a lower cost.”
Local Governments Seeking To Tax Bitcoin And Crypto Gains
In the review of the extensive financial crisis the nation is now experiencing, coupled with the explosion in the popularity of cryptos, most of the local administrations have begun to target cryptos and virtual currencies. They do that seeking ways to limit their use to enhance the peso or make some profits from the budding economic activity.
Recently, President Alberto Fernandez said that he was not averse to the possibility of bitcoin adoption as a legal tender or means of payment. He said that while considering that trading volume and adoption have exploded rapidly. So far, two Argentine provinces are pushing citizens to pay taxes on the profits that they get from crypto trading activities.
The first one is Córdoba. The province has determined that crypto transactions will be taxed. But, it extends this tax provision to people and firms that get payments in cryptos for their products or services.
On its part, Tucumán published last week Law No. 9421 that introduces various changes to the Tax Code (Law No. 5121), modifying Article 223 of the Tax Code. The changes now feature crypto traders within the definition of the operators of sale and purchase of foreign currencies and public securities, compelling them to also pay taxes.