Proposal to Eliminate Physical Representation of Argentine Pesos, It was put forward by former banker Carlos María de los Santos to streamline processes in certain states and reduce tax evasion. It also predicts that it will lead to a surplus in the Argentine economy.
Digital Peso Proposal to Stop Tax Evasion
On November 4, Carlos María de los Santos, a former Argentine banker and chairman of the Productive Inclusion Foundation, Proposition is called “Argentine Digital Peso” and encompasses the elimination of physical representations of currency and the digitization of all economic activity in Argentina. De Los Santos explained that the implementation of the plan will not cost the Argentinean government any additional costs and will allow the bank to monitor all transactions made by its citizens.
Bank account data has replaced physical bills, and stores and commerce must rely entirely on such data to conduct financial transactions. In this sense, this control offers the advantage of virtually eliminating tax evasion by making citizens’ transactions available for review by enforcers.
De los Santos notes that the current rate of tax evasion is around 50%, and by collecting all these funds, Argentina could achieve an economic surplus of up to 20% per year and reduce its tax deficit. I said I could. This widespread tax collection could also ostensibly lower taxes for all taxpayers.
Other benefits and similar suggestions
Other benefits preached by former bankers include raising interest rates for savers. It is included. Fund the system by avoiding investing in risky speculative assets. This could potentially consolidate the large amount of capital Argentines currently hold in international markets or just outside the banking system.
Other suggestions following this line of thought have been presented previously. In June, Argentina’s Governor Jorge Kapitanić Chaco also spoke about the benefits of having a single digital currency. At the time, Capitanic declared:
Shock he must have a policy. We may have a model that implies applying a digital currency as the sole legal tender. We must recognize the de facto existence of bi-monetary regimes.
Kapitanić’s proposal involves depositing all foreign currencies, including US dollars, in national banks and exchanging them for the proposed digital currency. This is the only way to trade these currencies on virtual systems.
However, according to Chainalysis, Argentina is one of the countries where cryptocurrencies are more prevalent, with the highest adoption of cryptocurrencies in his 13 ranked first. Such adoption and the existence of stablecoins could make it difficult to apply the proposed changes to Argentina’s trading economy.
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