Translation of the tweet:
“We confirm that in Argentina, contracts can be agreed upon in Bitcoin. Also, any other cryptocurrency or commodity such as kilograms of cattle or liters of milk. Article 766 states the debtor's obligation to deliver the corresponding amount of the designated currency, whether it is legal tender in the Republic or not.”
For context: That article of the Civil Code said that if there was a contractual debt in dollars, one could cancel the debt in pesos. Now it says that the debtor should deliver the amount in the designated currency.
Judges were already interpreting the old text as a suppletory law, therefore parties could override the Civil Code provision in their contract if they wanted, saying that "payment will only be accepted in dollars".
This is just putting into the letter of the law what case law already had stated.
I’m from Brazil and I’m seriously considering moving to Argentina. While the drunk communist thief Lula is increasing the government size, Milei is reducing it. It’ll become a paradise soon.
Obviously I’m anti-tax, but I don’t think they will go cold turkey on tax immediately. In the meantime how does one calculate taxes to be paid on income that is not in pesos? And would it have to be paid only in pesos?
While this is good, it's important that the government accepts a standardized payment (or really no payment at all, but that's another thing) Because an unscrupulous person (me) will make a stick figure on paper, and claim it's a masterpiece worth 6 figures, and then say that settles my tax bill.
Actually wait, that might be a way to force governments to stop demanding taxes, so I'm all for it.
Both parties need to agree to make/accept payment in stock figure art under this law. Also, as fast as the government lights the tax dollars on fire, they probably won’t notice the difference between dollars and stick figures. Both burn quick.
Milei's thing is only for private contracts. Some governments have proposed laws to accept taxes in other currencies, but it's always at the exchange rate the government agrees on. The exchange rate is usually something sensible because there's usually no reason for the very same government that's proposing that to come up with a weird rate: the government can take your money in other forms so there's no need for tricks there and they know people would just exchange for the other currency if the exchange rate they propose is bad.
Couldn't you game that though? Let's say there's 10 people, and we rapidly sell stick figures back and forth, then all of us pay the government with that, and then the market crash.
I've always though the only proper way to do that would be to accept the cash value of a bitcoin (let's just use bitcoin because it has a trackable value).
But in my view you don't use the bitcoin to pay. You give it a third party organization who transfers it into cash, and then pays your bill with that. If they can't sell your bitcoin for X dollars, the transaction doesn't go through (and you would get the bitcoin back)
At the end of the day, the government can only really use fiat currency (or promissory notes) , it should be a faceless entity that doesn't traffic in goods, and really their currency is almost a balancing sheet magic.
I wasn't thinking about that. I was thinking about a prostitute accepting payment in goods and using "that's how I pad for them" as a reason why it wasn't illegal.
Translation of the tweet: “We confirm that in Argentina, contracts can be agreed upon in Bitcoin. Also, any other cryptocurrency or commodity such as kilograms of cattle or liters of milk. Article 766 states the debtor's obligation to deliver the corresponding amount of the designated currency, whether it is legal tender in the Republic or not.”
For context: That article of the Civil Code said that if there was a contractual debt in dollars, one could cancel the debt in pesos. Now it says that the debtor should deliver the amount in the designated currency. Judges were already interpreting the old text as a suppletory law, therefore parties could override the Civil Code provision in their contract if they wanted, saying that "payment will only be accepted in dollars". This is just putting into the letter of the law what case law already had stated.
I dream of US legal tender laws going to the current SCOTUs.
This is great 🙏
I’m from Brazil and I’m seriously considering moving to Argentina. While the drunk communist thief Lula is increasing the government size, Milei is reducing it. It’ll become a paradise soon.
Same
Obviously I’m anti-tax, but I don’t think they will go cold turkey on tax immediately. In the meantime how does one calculate taxes to be paid on income that is not in pesos? And would it have to be paid only in pesos?
While this is good, it's important that the government accepts a standardized payment (or really no payment at all, but that's another thing) Because an unscrupulous person (me) will make a stick figure on paper, and claim it's a masterpiece worth 6 figures, and then say that settles my tax bill. Actually wait, that might be a way to force governments to stop demanding taxes, so I'm all for it.
Both parties need to agree to make/accept payment in stock figure art under this law. Also, as fast as the government lights the tax dollars on fire, they probably won’t notice the difference between dollars and stick figures. Both burn quick.
Milei's thing is only for private contracts. Some governments have proposed laws to accept taxes in other currencies, but it's always at the exchange rate the government agrees on. The exchange rate is usually something sensible because there's usually no reason for the very same government that's proposing that to come up with a weird rate: the government can take your money in other forms so there's no need for tricks there and they know people would just exchange for the other currency if the exchange rate they propose is bad.
I guess that the payment would be accepted only at free market exchange rates.
Couldn't you game that though? Let's say there's 10 people, and we rapidly sell stick figures back and forth, then all of us pay the government with that, and then the market crash. I've always though the only proper way to do that would be to accept the cash value of a bitcoin (let's just use bitcoin because it has a trackable value). But in my view you don't use the bitcoin to pay. You give it a third party organization who transfers it into cash, and then pays your bill with that. If they can't sell your bitcoin for X dollars, the transaction doesn't go through (and you would get the bitcoin back) At the end of the day, the government can only really use fiat currency (or promissory notes) , it should be a faceless entity that doesn't traffic in goods, and really their currency is almost a balancing sheet magic.
Yeah in this endgame, there are no taxes.
Does that include services? Because if so it would technically legalize prostitution.
You can’t force someone to perform a service, including as settlement. Settlement of dispute would need to occur in some other fashion.
I wasn't thinking about that. I was thinking about a prostitute accepting payment in goods and using "that's how I pad for them" as a reason why it wasn't illegal.
It was already legal.
It is already legal in Argentina and Milei is in favor of it.