Argentina MP for Mendoza proposes crypto salaries in new bill
Argentina’s national deputy for Mendoza, José Luis Ramón, announced a new bill that would see employees in certain sectors receive wages in cryptocurrency.
Workers in a dependent relationship and those exploring services can choose to receive their wages in part or in full in crypto.
Ramon introduced the bill, saying the idea was to “strengthen their autonomy and retain the purchasing power of their remuneration”. He went on to say that he was largely motivated by the need to promote greater autonomy and wage governance, without loss of rights or exposure to situations of abuse. The bill itself describes the proposal as focusing on maintaining the purchasing power of the self-employed.
Employees will be allowed to select the cryptocurrency they wish to be paid for and the choice of advance directives. This includes obtaining the salary in pesos which is payable in the equivalent amount in cryptocurrency on the day of payment, or direct payment in cryptocurrency.
If the bill were passed, the region would join El Salvador in considering employees receiving their cryptocurrency salaries. It would be one of the few places in the world to have made this transition, and will undoubtedly serve as an interesting experience.
Crypto salary payments are becoming commonplace
For the most part, crypto salary payments were limited to those working in the crypto realm – before El Salvador upset that with its recognition of Bitcoin as legal tender. Since then, there have been discussions about whether the asset class would perform well for a fee. On the sidelines such as the Canadian Elite Basketball League’s offer bitcoin payments is another notable development.
The key issue here is volatility. The crypto market is undoubtedly volatile and prices can fluctuate greatly from day to day. This can cause real problems for those who live month to month, and this is what has been one of the main sticking points in said discussions.
This is why there was some resistance to the idea in El Salvador. Officials across the country spoke of the challenges that come with this new shift, such as volatility, which can lead to lower wages for employees if the market goes down.
That said, countries seem to be opening up to the idea of further integrating cryptocurrencies into the economy. It seems the market needs a bit more adoption and overall stability before it can go so far as to become a form of remuneration accepted. But experiences like the ones mentioned above are a sign that things can be headed in the right direction.