The growing popularity of bitcoin in Argentina amid the crisis of the national currency

Buenos Aires has introduced a limit on the purchase of dollars, but this only stimulates the purchase of cryptocurrencies .

The economic block of the Argentine government has introduced measures to further control the movement of capital in the country. Now you can buy US dollars in the amount of not more than 10 thousand dollars, if we are talking about individuals. This is due to the fact that an increasing number of Argentineans tend to go online to foreign sites where they can buy bitcoin and other cryptocurrencies at an average market price if it is denominated in US dollars.

If the Argentinean has only Argentine pesos on his hands, then he risks overpaying for the purchase of cryptocurrencies, since confidence in the monetary unit of this country in South America is rapidly declining. In August alone, the monetary unit of this country devalued by 25% against the US dollar. The latter is due to the fact that the IMF financial assistance program for the country's economy has not become effective.

In addition, foreign exchange reserves were on the verge of zeroing in the near future. So far, there seems to be a lot of them in absolute terms in terms of “net reserves” – $ 15 billion, but at the end of last week, the country's authorities were forced to spend $ 3 billion in just two days.

The country is getting closer to the scenario when Buenos Aires will be forced to default on its government obligations. The government has already announced a deferral of payments, which affect obligations in the amount of $ 7 billion. Restrictions on the movement of capital are also introduced for legal entities that are prescribed, for example, in the case of foreign exchange earnings abroad, must bring it into the country within five days.

However, Buenos Aires is most worried about the growing number of Argentines, as well as representatives of local businesses, who are starting to switch to Bitcoin and other cryptocurrencies. Back in March, the Argentine authorities discussed the use of cryptocurrencies in the country , but at the moment they are faced with the fact that this process began on its own.

Publication date 09/04/2019
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