Bitcoin adoption in Argentina is growing at a fast pace and the government has started preparing a tax increase for investors in the sector. The search for cryptocurrencies in the country is characterized by the flight of the population from the Argentine peso, one of the currencies that suffers most from inflation in the world.
Since Argentines are also used to using the dollar in their economy, the arrival of cryptocurrencies was one more option, including stablecoins.
In any case, the Strike company recently arrived in Argentina with its Bitcoin solution, which works with the Lightning Network. And one of those accompanying this movement is Anthony Pompliano, one of the most respected Bitcoin educators.
“Bitcoin adoption in Argentina is growing at a dizzying pace”
One of the top Bitcoin YouTubers in the United States is Anthony Pompliano, an advocate for the technology and its use cases, whether as a store of value or as a means of payment. And in a video released last week, he highlighted that Bitcoin is taking over Argentina.
That’s because the adoption of bitcoin as a currency in the country neighboring Brazil is growing at a dizzying pace, both on the network (onchain) and in the second Lightning Network layer.
“FIRST IT IS IMPORTANT TO UNDERSTAND THAT ARGENTINA IS IN A TERRIBLE ECONOMIC SITUATION. INFLATION WILL REACH 55% GROWTH THIS YEAR AND GDP WILL FALL 12%. AND NOW 100,000 PEOPLE HAVE DOWNLOADED THE LIGHTNING NETWORK APP, DEMONSTRATING THE MASS ADOPTION OF BITCOIN IN THE COUNTRY.”
Pompliano recalls that Strike saw this promising arrival in just two weeks, that is, Bitcoin is the escape valve for people who trust their government and central bank less and less, choosing to use money that no one can debase.
Anthony is known to be a Bitcoin enthusiast and keeps an eye on the South American country.
Government prepares to raise taxes
The accelerated adoption of Bitcoin in Argentina does not please its government, which is already preparing a tax package for the cryptocurrency market. Currently, tax collection in the country follows a system called Check Tax.
But in the last week, like Paulo Guedes in Brazil, the Argentine Finance Minister, Martín Guzmán, met at the G20 to explain the reality of the country, when he ended up talking about cryptocurrencies.
According to the Ámbito portal, the minister declared that the Government of Argentina agrees with a study on the collection of information on the cryptocurrency market, which would imply a new front for compliance with tax obligations.
Industry experts in the country believe that this movement indicates the creation of more taxes for cryptocurrencies in Argentina, a measure that certainly distances companies from the sector and reduces the generation of income that this activity brings to the country.
In any case, it is possible that the massive adoption of Bitcoin in the country is putting pressure on the government that apparently wants to tax more.