I live in Uruguay and I don't earn "SF money", a 70k paycheck would be huge here (and in Argentina as well).
And to avoid the currency inflation you should of course choose to earn in U.S. dollars, or negotiate to be tied to the regular - currently bi-annual in Uruguay - pay increases in countries with inflation (which usually lag inflation and are a bad deal, but offer some buffer to it).
My $0.02 your pay should not be based on how much you spend. If your co-worker chooses to buy an expensive car or live in an expensive city, then they should not get paid more than the guy that lives with his parents because he wants to save money.
Unfortunately that's how it works for companies today - they know they can pay less depending on where you live (even within the same country, like SF vs Midwest US).
It's because it's a market; there is less demand in non-hub / smaller places. Think about the same thing for houses - should you pay SF house prices living in the midwest?
but that logic breaks down when if you factor in competition from other remote companies.
The moment one remote company offers an SF rate compensation outside of SF, then the job candidate's market rate is an SF rate.
I totally understand if a company doesn't have the budget for talent and looks to exclusively hire in non-hub / smaller places in order to keep costs low. But I hate when a company says: we understand you have an SF rate offer and we would normally compete with that if you lived in SF, but, sorry, our excel spreadsheet says we can only lowball you.
And to avoid the currency inflation you should of course choose to earn in U.S. dollars, or negotiate to be tied to the regular - currently bi-annual in Uruguay - pay increases in countries with inflation (which usually lag inflation and are a bad deal, but offer some buffer to it).