The popularity of bitcoin in Argentina is growing amid new currency restrictions

The Central Bank of Argentina has reduced the limit on individuals buying foreign currency from $ 10,000 to $ 200 per month after the victory of leftist candidate Alberto Fernandez in the presidential election, reports Cointelegraph .

Moreover, the limit of $ 200 applies to holders of bank accounts, when buying for cash, the limit is even tougher – $ 100.

The Central Bank said that announced measures are being introduced for two months.

Previous restrictions were introduced by President Mauricio Macri in September and pushed the price of bitcoin up.

In August, after Macri's crushing defeat at the primaries, the Argentine peso and government bonds plummeted. As a result, the leading cryptocurrency was traded on local sites at $ 300 higher than the average market price, and on Localbitcoins the premium reached up to $ 1000.

The volume of trade of the first cryptocurrency in Argentina on this 2p2 platform last week amounted to 14.15 million pesos ($ 240 thousand). An indicator comparable to neighboring 190 million Brazil ($ 280 thousand), with a population of 43 million.

Coin Dance Data

Well-known trader and analyst Alex Krueger believes that the measures of the new authorities will only increase the popularity of bitcoin in the country.

Expect the new government to extend the capital controls as well as take over the central bank, among other things.

A bitcoiner's dystopian world is shaping up down under.

Argentina's currency black market will ball.

– Alex Krüger (@krugermacro) October 28, 2019

“Expect the new government to expand capital control and take over the central bank, among other things. Next, an anti-utopian world of bitcoiners will be formed. The black currency market in Argentina will also grow rapidly, ”he wrote.

Amid growing popularity of cryptocurrencies in Argentina, trading floors in the country have previously launched such large exchanges as the OKCoin and Huobi Group . Similar plans were announced by Binance. However, in the comments on the Kruger tweet, it was felt that the Argentine authorities would take control of the bitcoin exchange as well.

Recall that the Macri government was loyal to the blockchain industry and participated in a joint venture financing program for blockchain industry startups with Binance Labs. In the country, it was possible to pay with bitcoins for travel in public transport.

Subscribe to BlockchainJournal news on Facebook !