Pressure Mounts on Milei to Dollarize
Argentina's Foreign Affairs Minister, Diana Mondino, has recently announced that financial contracts in the country can now be denominated in Bitcoin. This move is seen as a step towards fulfilling President Javier Milei's promises, including the dollarization of the economy and the abolition of the central bank.
Since his inauguration, there has been increasing pressure on President Milei to honor his pledge of dollarizing the economy. Supporters, including Johns Hopkins University professor Steve Hanke, have urged him to take action. However, instead of dollarization, President Milei has chosen to devalue the country's currency, the peso, by over 50%.
Return of the Barter Trade System
The announcement by Minister Mondino indicates that the Argentine government is no longer limiting financial contracts to the peso as the only legal medium of exchange. According to Mondino, residents can now settle contracts with any medium of exchange that the parties agree upon. This includes cryptocurrencies like Bitcoin, as well as other commodities such as steel or milk.
The inclusion of non-traditional mediums of exchange in financial contracts marks a significant departure from the previous system. It opens up possibilities for greater flexibility and diversification in transactions.
Other Measures by the Milei Government
In addition to allowing alternative currencies in financial contracts, the Milei government has introduced other measures aimed at reforming the economy. These include cutting fuel and transport subsidies, reducing the number of government ministries, and modernizing labor laws. These steps are seen as part of President Milei's broader agenda to bring about economic change in Argentina.
Ridicule and Criticism
Despite the government's efforts, some social media users have ridiculed Minister Mondino's announcement. They see it as a return to a barter trade system and compare it to the Central African Republic, the only African country to make Bitcoin legal tender.
While there may be differing opinions on the government's decision, it is clear that Argentina is taking steps towards embracing alternative currencies in its financial system. The inclusion of Bitcoin and other mediums of exchange in financial contracts reflects a growing recognition of the evolving nature of money in today's digital world.
What are your thoughts on Argentina's decision to allow Bitcoin and other currencies in financial contracts? Let us know in the comments section below.
Frequently Asked Questions
What Is a Precious Metal IRA?
You can diversify your retirement savings by investing in precious metal IRAs. This allows you to invest in gold, silver and platinum as well as iridium, osmium and other rare metals. These metals are known as “precious” because they are rare and extremely valuable. They make excellent investments for your money and help you protect your future from inflation and economic instability.
Precious metals often refer to themselves as “bullion.” Bullion refers only to the actual metal.
Bullion can be purchased via a variety of channels including online sellers, large coin dealers, and grocery stores.
An IRA for precious metals allows you to directly invest in bullion instead of purchasing stock shares. This ensures that you will receive dividends each and every year.
Unlike regular IRAs, precious metal IRAs don't require paperwork or annual fees. Instead, you only pay a small percentage on your gains. Additionally, you have access to your funds at no cost whenever you need them.
How Does Gold Perform as an Investment?
The price of gold fluctuates based on supply and demand. It is also affected by interest rates.
Due to the limited supply of gold, prices for gold are highly volatile. You must also store physical gold somewhere to avoid the risk of it becoming stale.
What precious metals do you have that you can invest in for your retirement?
Gold and silver are the best precious metal investments. They are both easy to trade and have been around for years. If you want to diversify your portfolio, you should consider adding them to your list.
Gold: The oldest form of currency known to man is gold. It's stable and safe. This makes it a good option to preserve wealth in uncertain times.
Silver: Silver has always been popular among investors. It's a great option for those who want stability. Unlike gold, silver tends to go up instead of down.
Platinium is another precious metal that is becoming increasingly popular. It's resistant to corrosion and durable, similar to gold and silver. However, it's much more expensive than either of its counterparts.
Rhodium – Rhodium is used to make catalytic conversions. It is also used to make jewelry. It's also relatively inexpensive compared to other precious metals.
Palladium – Palladium is an alternative to platinum that's more common but less scarce. It is also cheaper. Investors looking to add precious and rare metals to their portfolios love it for these reasons.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
External Links
investopedia.com
- Do You Need a Gold IRA to Get Retirement?
- What are the Options? Types, Spreads, Example and Risk Metrics
cftc.gov
irs.gov
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement plans
How To
A rising trend in gold IRAs
The gold IRA trend is growing as investors seek ways to diversify their portfolios while protecting against inflation and other risks.
The gold IRA allows owners to invest in physical gold bullion and bars. This IRA can be used to grow your wealth tax-free and is an alternative option to stocks and bonds.
A gold IRA allows investors the freedom to manage their wealth without worrying about volatility in the markets. Investors can use the gold IRA for protection against inflation and potential problems.
Investors also get the unique benefits of owning physical Gold, including its durability, portability, flexibility, and divisibility.
The gold IRA also offers many other benefits, such as the ability to quickly transfer the ownership of the gold to heirs, and the fact the IRS doesn't consider gold a currency.
This means that investors who are looking for financial safety and security are becoming more interested in the gold IRA.
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By: Terence Zimwara
Title: Argentina Allows Bitcoin and Other Currencies in Financial Contracts, Debtors Obligated to Deliver
Sourced From: news.bitcoin.com/argentine-foreign-minister-financial-contracts-can-now-be-denominated-in-btc/
Published Date: Sun, 24 Dec 2023 12:30:42 +0000
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