The Minister of Modernization considers that the public sector must also be willing to innovate. Congress will soon debate a bill for residents to receive salaries in cryptocurrencies.

Martín Güemes, the Minister of Modernization of the Province of Salta, Argentina, stated that they need to address the absence of regulations on cryptocurrencies. For this reason, he believes that the national government must adapt the regulatory system to include digital currencies.

Güemes said that local governments are mere spectators regarding new technologies, which he thinks offer great possibilities. Likewise, he criticized the state as it maintains an active role in prevailing tax collection thinking.

The Salta official stated that the missing regulations should protect consumers and investors. Additionally, he highlighted that cryptocurrencies generate much more trust than other currencies even though they are outside formal systems. He sees it as a modernization of the monetary system that reconfigures the roles occupied so far.

Argentina Seeks to Regulate Cryptocurrencies

What Martín Güemes said can serve as a trigger to analyze the state of cryptocurrencies and their regulation in Argentina. Thereon, a national deputy submitted a bill to allow citizens to receive their salaries in cryptocurrencies.

Legislator José Luis Ramón, from the province of Mendoza, introduced the initiative. It could benefit wage earners, who would not lose their purchasing power due to the devaluation of the Argentine peso (ARS). Besides, it could help those who export services abroad since they would not be obliged to convert their earnings into pesos.

Ramón trusts that his bill will advance. Additionally, he has publicly stated that the president of Argentina, Alberto Fernández, assured him that he would support the debate in Congress.

However, they have to continue waiting to see the approach of Argentina to this regulation if the state puts collection anxieties aside. Martín Güemes wrote that governments gloat when accounting for how much they would obtain to alleviate their deficits if they charged taxes on those transactions.

The minister considers that they conceived of this look from a scheme from the past and should avoid it. At the moment, analysts report that the Argentine authorities can only apply two taxes to cryptocurrencies as assets. They are the Personal Property Tax and the Income Tax.

Relevance of Cryptocurrencies in Argentina

This moment favors cryptocurrencies as there has been an increase in Internet purchases and using means of payment on cell phones. Their appearance means an excellent opportunity for financial inclusion, expanding the offer of savings, investment and credit instruments at a lower cost.

According to Güemes, governments must analyze technical alternatives in a scenario where cybersecurity is crucial. Decentralization of financial power to a non-exponential but significant degree is inevitable. It will be impossible to stop this process, having an international and local financial system with new rules in the future.

Argentine local and subnational governments need to analyze, innovate and project opportunities in the private sector. Although technology sometimes creates huge social gaps, its trend includes efficiency and simplicity as an opportunity for inclusion and equality.

By Alexander Salazar

Experts say that the digital yuan could displace the US dollar in the long term. China’s CBDC would be a surveillance and control system for the government.

The history of transactions with its central bank digital currency (CBDC) would allow China to record national financial data. That would carry a potential use in state surveillance and control over the citizens of the Asian country.

According to a recent Chainalysis report, two experts predict that the digital yuan could become a complete surveillance tool. Besides, they consider that this will threaten the hegemony of the US dollar (USD) around the world.

Dovey Wan, an expert on Asian cryptocurrency markets, and Yaya Fanusie, a partner of the Center for New American Security (CNAS), comment on this. They agree that China could contrast financial information on citizens with other data or factors to introduce restrictions or authoritarian measures.

For example, Fanusie noted that the Chinese Communist Party (CCP) recently sent a warning. The political organization said it would exclude Mongol families who do not send their children to state schools. Fanusie explained that the digital yuan would allow the government to combine financial data with such lists.

Although the government has stated that it wants to fight corruption, Fanusie believes they will turn these financial surveillance capabilities against citizens.

On her part, Dovey Wan said that the digital yuan could allow a programmable and predictable monetary policy. Additionally, she said it could provide a lower cost per transaction to traders who use it.

However, the analyst predicts that the government could use it as a financial surveillance tool. Likewise, they could exclude from the financial system those individuals and businesses that have committed any infraction.

Digital Yuan May Displace the US Dollar in the Long Term

Fenusie also touched on the issue of the alleged threat of the digital yuan on the US dollar. He believes that the Chinese CBDC will not succeed in displacing the US fiat currency any time soon.

However, he does think that the exchange between different CBDCs from different countries would have negative consequences. He believes that this could harm the prominence of the US dollar as a common currency for trade in the world.

The executive said the Chinese government would want to make deals with other countries to exchange CBDCs. That would be an atomic exchange of CBDCs through a common meeting ground between their networks.

If the exchange of CBDCs happens on the same platform, the US dollar could lose ground against the digital yuan, Fenusie said.

Furthermore, the analyst thinks China has been more innovative regarding financial technologies (FinTech) than the United States. He said the US economy could miss out on the next wave of data-driven innovation if that also happens with blockchain technology.

China understands the potential of cryptocurrencies but prefers to use them on rare occasions or only to the extent that it allows meeting its objectives, according to the Chainalysis report. The document stated that the country would continue to develop its digital yuan seeking to evade financial sanctions and establish a global monetary system.

US Senator Cynthia Lummis acknowledged that CBDCs are inevitable, but she sees the policies of China as being dictatorial.

The United States does not consider issuing the digital dollar a priority. In that regard, China is further ahead, leading analysts to predict that the digital yuan could become much more competitive than the US dollar.

By Alexander Salazar

Morehead calculated the price of Bitcoin at USD 700,000 over the next ten years, despite recent price drops and volatility. US lawmakers introduce bills to regulate the use of cryptocurrencies while other countries continue to support these assets.

The pioneering cryptocurrency reached its all-time high this year but is going through a considerable setback right now. Pantera CEO Dan Morehead is among those wondering whether it will soon resume the bullish rally. He recently revealed his predictions for Bitcoin (BTC), highlighting the high prices and estimates.

According to a Reuters report, Morehead made a couple of predictions about the price of Bitcoin. The CEO said where he thinks the price will end up, considering increased regulatory action against cryptocurrencies.

A growing number of institutional investors have access to the cryptocurrency that Satoshi Nakamoto created. Many of them see the recent drops in the price of Bitcoin as a buying opportunity to invest in Bitcoin.

Dan Morehead Predicts the Price of Bitcoin Will Keep Rising

Regarding the price of Bitcoin by the end of 2021, Morehead estimated that it would be between USD 80 thousand and USD 90 thousand. The executive also calculated that the value of BTC would reach more than USD 120 thousand in a year.

Beyond the predictions, the CEO calculated the price of the cryptocurrency would reach USD 700,000 in the next ten years. The recent drops in the price of Bitcoin and its volatility do not seem to faze Morehead as its price predictions remain high. That occurs despite speculation that the cryptocurrency market could take a long bearish direction.

Relevance of the Cryptocurrency Market Worldwide

Regarding the direction of regulation in the market, the CEO of Pantera explained that regulatory scrutiny would increase. For example, he pointed to the recent regulatory actions of different countries against Binance. Morehead views the increased regulatory scrutiny as a transition phase for the cryptocurrency market.

Crypto assets have seen the rise of regulatory debates from countries around the world. US lawmakers continue to introduce bills that seek to provide adequate regulations.

At the same time, other countries continue to favor cryptocurrencies. Earlier this year, the President of El Salvador announced that they would accept Bitcoin as legal tender. The entry into force of the respective law will occur in September.

Bitcoin Will Help People During Economic Crises

The CEO of Pantera believes that cryptocurrencies like Bitcoin will help people cope with economic crises. He said in 2020 that the United States had been printing more fiat money than during the two centuries after its founding.

It is precisely the limited issuance of the pioneering cryptocurrency that makes it more valuable and convenient than fiat money. However, the excess of banknotes in circulation has an opposite effect on the economy, which contracts instead of growing.

The authorities of different countries know the potential of the cryptocurrency, so they seek to tighten the regulations on it. However, some people and institutions support investing in Bitcoin and other decentralized cryptocurrencies. Even some of those who attacked it in the past now show a positive attitude towards it.

By Alexander Salazar

An initiative by a citizen of the state of Bahia seeks to gather 20,000 votes to transcend. He believes that Bitcoin will soon be the currency most widely used as a store of value worldwide.

Bahia citizen Gustavo Gomes recently went to the website of legislative ideas of the Senate of Brazil. He proposed to pass a law to adopt Bitcoin (BTC) as part of the reserves in the country. He believes that the South American nation should buy at least between 5% and 10% of the total supply of the pioneering cryptocurrency.

According to Gomes, Bitcoin will soon become the currency most widely used as a store of value worldwide. He said that his country needs to keep up with the technological evolution of cryptocurrencies not to be left out.

Any resident of Brazil can propose laws or suggest changes among those in force through the website. However, civil society must support them to move towards the Commission of Human Rights(CHR) and the Participatory Legislation of the Federal Senate.

Since Gomes’ bill is on the website, it has already passed the first step. Only the laws that comply with the terms set by the Senate transcend. Otherwise, the government agency files them.

The ideas posted remain on the website for four months until they receive the support of other citizens. Gomes’ proposal must gather 20,000 votes to move to the CHR, where senators would debate it.

How long the proposal has remained on the official site of the Brazilian Senate is unclear. However, it has barely received 32 votes and has yet to collect 19,968 points before October 19^th to complete the required public support.

If the law receives approval for 10% of the Bitcoin supply, Brazil would be buying more than 1,880,000 BTC. The country would become the hugest Bitcoin holder, even if it only bought between 5% and 10% of the cryptocurrency in circulation. For the moment, the address with the most coins owns 168,000 BTC.

El Salvador Inspires Latin American Countries and Other Countries

El Salvador’s Bitcoin Law inspired the legislative idea that Gustavo Gomes sent to the Senate of Brazil. The initiative of the Central American country not only inspired bitcoiners but also awakened the BTC spirit of legislators from various nations.

Brazilian deputy Fabio Ostermann showed his sympathy towards the cryptocurrency through his Twitter profile. He made it clear that he supports BTC by placing the characteristic laser eyes on his face. However, he subsequently removed any sign of support for Bitcoin from his profile.

Russell Okung, a player in the US National Football League (NFL), also drew inspiration from El Salvador’s Bitcoin Law. He even sent a letter to the government of his native Nigeria asking them to follow the example of the Central American nation. The player of the Carolina Panthers team wants them to seek financial sovereignty through a national standard attached to the first cryptocurrency.

No one knows which country will be the second to change its legislation to adopt Bitcoin. Meanwhile, Bank of America believes that the cryptocurrency will bring benefits to El Salvador. Those advantages would include sending remittances, financial digitization, and the possibility of exploring new avenues of business with foreign companies.

The American institution seems to be changing its position on Bitcoin. It previously referred to Bitcoin’s volatility as a hindrance to using it as a store of value or means of payment.

By Alexander Salazar

The adoption of Bitcoin will bring four benefits to El Salvador, according to Bank of America. The US financial institution highlights the investment potential that the cryptocurrency will attract in the Central American country.

Bank of America recently said that adopting Bitcoin (BTC) as legal tender would give El Salvador several advantages. The US financial institution refers specifically to four benefits in a document that the president of the Central American country, Nayib Bukele, shared.

Bank of America believes that El Salvador will benefit from the pioneering cryptocurrency in terms of remittances. Besides, they mentioned financial digitization, more options for consumers, and the possibility of exploring new avenues of business with foreign companies.

In the document that Bukele posted on Twitter, Bank of America referred to the advantages of using Bitcoin for remittances. The institution explained that this could potentially reduce transaction costs in contrast to traditional remittance channels.

The financial entity recognizes that there is a high incidence of remittances from Salvadorans living abroad. Therefore, if using cryptocurrency can reduce costs, the recipients and senders of remittances would benefit.

By using the remittances in Bitcoin they receive from abroad, recipients could get a larger share for every US dollar. That would increase their available income and reduce the proportion of remittances lost due to financial intermediaries.

Regarding financial digitization, the text mentions the progressive element of democratizing digital payments with Bitcoin. That will be particularly relevant in a country where a vast majority of adults are unbanked.

On the other hand, Bank of America sees the adoption of Bitcoin as a way to give more choices to consumers. Likewise, they do not consider the legal obligation for businesses to accept cryptocurrency as coercive if they have the appropriate technological infrastructure. In that sense, they highlight the existence of the Chivo wallet, which the Salvadoran government created. Also, they said that the trade could convert BTC payments directly to US dollars.

The US bank also refers to the potential foreign investment that new industries associated with Bitcoin would bring. Such sectors would include cryptocurrency mining, payment gateways, and cryptocurrency ATM operators.

Bank of America Endorses Bitcoin After Criticizing It

The brief report from Bank of America is curious, as they referred to Bitcoin as impractical just a few months ago. They referred to the volatility of Bitcoin as a hindrance to using it as a store of value or means of payment. However, it seems that they are now supporting the use of the cryptocurrency.

Bank of America’s current position is in stark contrast to that of other reputable financial institutions. For example, JP Morgan stated in mid-July that the adoption of Bitcoin would cause problems for both El Salvador and the cryptocurrency.

It is not the first time renowned people and financial institutions have changed their opinion on the pioneering cryptocurrency. Many governments fear that Bitcoin contributes to illicit activities, so they have tightened regulations on its use. However, several studies have revealed that money laundering and terrorism financing cases are higher with fiat currencies.

By Alexander Salazar