Bitcoin Trading Above $ 30,000 Against Argentine Peso as Government Enforces New Wealth Tax

Bitcoin is currently trading at approximately 2.69 million Argentine Pesos (ARS) on exchanges that support BTC / ARS trading pairs. This means that the leading cryptocurrency is trading at around $ 32,700 on these platforms, well above the current cryptocurrency rate of $ 17,650 across global exchanges.

The leading price of cryptocurrency grew steadily against Argentina’s Peso this year as the country dealt with a 35% inflation rate and people suffering through the COVID-19 crisis and currency controls.

CryptoCompare data shows that while the price of BTC is up 145% against the US dollar so far this year, it is up over 430% against the ARS.

The price, it’s worth noting, is based on the alleged blue dollar circulating in Argentina, and not on the other dollar rates that one can find in the country. The blue dollar is said to be governed only by supply and demand in the country.

The premium of the cryptocurrency against the ARS is based on the plumbing value of the fiat currency. Experts’ forecasts on Argentina’s Peso are bleak. Reports suggest, however, that the gap between official and market dollar exchange rates in the country has narrowed over the government’s adoption of “more orthodox measures to boost exports.”

According to Bloomberg, the Argentine Parliament late Friday approved a proposed one-time wealth tax that looked to boost government revenue by targeting millionaires with assets of over 200 million pesos ($ 2.4 million).

The tax will be between 1% and 3% of their wealth and look to boost revenue after stringent lock-in authorities forced by the COVID-10 pandemic saw government revenues plummet. Senator Carlos Caserio, a member of the committee responsible for the measure, was quoted as saying:

This is a unique, one-time contribution, ”said Senator Carlos Caserio, a member of the committee responsible for the measure, according to a statement on the Senate website. “We are coming out of this pandemic so that countries are coming out of world wars, with thousands of dead and destructive economies.

According to reports, Argentina’s Central Bank (BCRA) Director on fiat currency, Carlos Hourbeigt, has pressed for using a national payment network that would replace the use of ARS in cash, called “Tranferencias 3.0,” and a which would be monitored by the country’s central bank.

The move has faced backlash from cryptocurrency advocates in the country who believe regulators want to control the population further through Transferencias 3.0. Camilo Jorajuría, a legal adviser in Argentina tweeted that “only bitcoin fixes this.”

Local crypto news outlets have been questioning whether the move is a “war against privacy,” as submissions on Transferencias 3.0 claim that “cash is the common enemy.”

Featured image via Unsplash.