If you have followed the cycle of macroeconomic news or Bitcoin in recent months, you have probably read something about Argentina's concerns. The South American country is going through a series of political and economic turmoil that has led to a rapid rise in inflation and a turbulent stock market.
In short, it is unlikely that the attitude of the Argentine peso or local assets will be sustainable. As a result, many have put on alternative investments such as Bitcoin and dollars. But the Argentine central bank is busy with it.
Argentina bans purchases of Bitcoin and US dollars
According to a report from the Brazilian Bureau of CoinTelegraph, the country's central bank wrote in a recent press release that the purchase of cryptocurrency is prohibited by some payment methods. The payment methods in question are, for example, credit cards with the registration of the bank:
"Acquisition of Bitcoin and Cryptocurrencies It is forbidden to buy BTCs with this method of payment.The only remaining alternative for this investment is to do so with funds transferred from a bank account."
The Argentine Central Bank says that this is done to preserve the integrity of the country's foreign exchange reserves. This happens shortly after the announcement by Argentine monetary authorities that they will only allow Argentines to buy $ 200 a month in the market. Previously, individuals were allowed to buy up to $ 10,000 a month.
Although Bitcoin can not be purchased through credit cards in Argentina, cryptocurrency can be acquired in different ways, via platforms such as LocalBitcoins and Paxful, which focus on peer-to-peer exchanges through such means as only cash and gift cards. According to Coin.dance, the local bitcoin market in Argentina has reached record levels in recent weeks.
This has a good reason. Bitcoin transactions can not be censored, can be shipped to anyone in the world in minutes and are cheap compared to the existing bank transfer system in the Fiat system.
Bitcoin not a correct solution?
Of course, the introduction of Bitcoin and cryptocurrencies makes sense, they are probably more stable, easier to trade and more global than the Argentine peso. But there is no guarantee that the Argentineans will accept cryptocurrencies across the country.
The American-Argentine crypto-macro researcher Alex Krüger said during the collapse of the Argentine economy earlier this year that his colleagues were not buying Bitcoin at home. He wrote in discussions on Twitter that Bitcoin's notoriety is "extremely low" in the South American nation.
Proof of text: newsbtc