Argentina’s Former Banker Proposes Digital Peso To Eliminate Tax Evasion
On November 4, former Argentine banker and head of the Productive Inclusion Foundation Carlos Maria De Los Santos revealed a plan known as the “Argentine Digital Peso,” which would digitize all economic activities and do away with the physical representation of the money in Argentina.
According to De Los Santos, carrying out this idea would give banks control over all transactions done by citizens and would ostensibly cost the Argentine government nothing extra.
According to the former banker, the country has a tax evasion rate of about 50%. By collecting all of these monies, Argentina could generate an annual economic surplus of up to 20%, reducing tax deficits.
Additionally, there is the potential for cheaper taxes for all taxpayers as a result of this extensive tax collection.
Physical banknotes would be replaced with bank account data, forcing businesses to rely on this information for all financial transactions completely. Since the transactions of the citizens would be open for inspection by the enforcers, this control would effectively eliminate tax evasion.
The former banker also argued that greater interest rates for savers would encourage them to deposit their money in the system rather than making riskier speculative ventures. This may merge significant quantities of capital Argentina now holds on foreign markets or in areas outside the banking system.
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