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Argentina’s central bank bans certain Bitcoin purchases due to economic problems

If you’ve been following the macroeconomic or Bitcoin news cycle in recent months, you’ve probably read something about Argentina’s concerns. The South American country is in a series of political and economic turmoil that has led to rapidly rising inflation and a turbulent stock market.

In short, it is unlikely that the attitude of the Argentine peso or local assets is sustainable. Therefore, many have put on alternative investments such as Bitcoin and dollars. But the Argentine central bank is taking action.

Argentina bans Bitcoin and US dollar purchases

According to a report by CoinTelegraph’s Brazilian office, the country’s central bank wrote in a recent news release that it prohibits the purchase of cryptocurrencies using certain payment methods. The payment methods in question are, for example, credit cards with the inscription of the bank:

“Acquisition of Bitcoin and cryptocurrencies. It is forbidden to buy BTC with this payment method. The only remaining alternative for this investment is to do so with funds transferred from a bank account. “

The Argentine Central Bank claims that this is done to preserve the integrity of the country’s foreign exchange reserves. This happens shortly after the Argentine monetary authorities announce that they will only allow the Argentines to buy 40 dollars a month on the market , Previously, individuals were allowed up to Buy $ 0 a month.

While Bitcoin can not be purchased through credit cards in Argentina, the cryptocurrency can be acquired in other ways, through platforms such as LocalBitcoins and Paxful, which rely on peer-to-peer exchange through means such as cash and gift cards focus. According to Coin.dance, the Argentine localbitcoins market has reached record levels in recent weeks.

That 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 bank transfer system that exists in the Fiat system.

Bitcoin not a correct solution?

Sure, the introduction of Bitcoin and cryptocurrencies is basically meaningful – they’re probably more stable, easier to trade, and more global than the Argentine peso. But there is no guarantee that Argentines will accept cryptocurrencies across the country.

Argentine-American crypto-macro researcher Alex Krüger said when the Argentine economy collapsed earlier this year that his colleagues did not buy Bitcoin at home. He wrote in Twitter threads that Bitcoin consciousness is “extremely low” in the South American nation.

Text Proof: newsbtc