Argentina’s New Dollar Tax Is a Boon for Cryptocurrency

Argentina’s New Dollar Tax Is a Boon for Cryptocurrency

Gate Trade News Friday, September 18, 2020 60 1

Argentina's central bank can't keep with the country's demand for US dollars.To combat this, the country has imposed a new 35% tax on purchases made in dollars.

 

As a result, Argentines may seek out dollar alternatives in stablecoins such as DAI, whose volume and price spiked yesterday on local exchanges.Some countries promote a culture of saving, but for Argentinians, that’s becoming a nightmare. 

 

Argentines’ recent tendency to hoard US dollars because of high inflation of the local currency has led the central bank to hit back. 

 

Hoarding dollars could have starved the government of dollar reserves within a year. So, yesterday, the central bank hardened measures to avoid this practice by imposing a new 35% tax on purchases made in dollars