The “crypto dollar” falls in Argentina after the approval of the Bases Law in the Senate
Key facts:
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The “crypto dollar” fell 2% after the vote in the Senate.
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The Base Law must now return to Deputies, to see if the latest modifications are accepted.
The Argentine Senate approved the “Bases Law” and the fiscal package proposed by President Javier Milei on Wednesday night. After a 36-36 tie, the Vice President of the Nation, Victoria Villarruel, broke the tie and gave the first parliamentary victory to the Executive Branch.
Now, The text will be debated again by the Chamber of Deputieswho must decide whether or not to accept the changes introduced by the senators.
In this framework, the market began to give the first signs and the “crypto dollar” registered a drop of 2% after the most important points of this Base Law and the fiscal package were approved.
As seen in the image, the price of USDT, the stablecoin issued by the Tether company, was close to 1,333 Argentine pesos before the vote. After the sanction, it was positioned close to 1,280 Argentine pesos.
It is important to clarify that the “crypto dollar” is not governed by traditional market hours and operates 24 hours a day, which is why it is considered a key indicator of what can happen in the stock market during this day.
As reported by CriptoNoticias, Argentina is the Latin American country that leads the adoption of bitcoin (BTC) and cryptocurrencies, with averages of more than USD 85 billion in crypto assets traded until mid-2023.
This behavior reflects that Argentines bet on these assets to protect their savings from annual inflation that is greater than 270%.
During the debate, there were modifications in several chapters of the Base Law and the fiscal package. In this regard, the senators remained firm in their initial position and established that cryptocurrencies cannot be laundered abroad, as the Chamber of Deputies had proposed.
President Javier Milei managed to approve key chapters to reform the operation and reduce the size of the State.
The senators also approved the Labor Reform, while the Personal Property Tax and Income Tax chapters.
In this context, the main Argentine stocks show increases in the pre-market, as seen in the following table:
How is the course of the Base Law continuing?
The Bases Law project underwent modifications during the debate in the Senate and will now have to return to the Chamber of Deputies of the Nation, so it has yet to come into force.
If the deputies accept these modifications introduced by the senators, the rule will be sanctioned and the final text will be sent to the Executive Branch for promulgation.
Another scenario is that the Lower House rejects the proposed changes and insists on the original wording of the law. For this you need an absolute majority.
Finally, President Javier Milei, in use of his constitutional powers, has the power to veto any article of the Base Law. In case this occurs, returns to Congress.
