Argentinean Bitcoin Traders Are Restricted From Buying Dollars

Argentinean bitcoin traders are restricted from buying dollars in an attempt from the central bank to stop the flight of capital so let’s read more today in our latest Bitcoin news.

Argentina is a country battered by high inflation and it decided that the Argentinean Bitcoin traders will be prohibited from buying US dollars at the official exchange rate in a bid to tame the capital flight. The country’s central bank said that those that purchased BTC or other digital assets in the past 90 days with pesos, won’t be able to access the single free exchange market and purchase dollars.

📣🏦Comunicado “A” 7552 del BCRA

🔴El BCRA prohíbe a las empresas importadoras y personas humanas acceder al dólar oficial si compararon criptomonedas con PESOS en el día que solicitaron el acceso al mercado y en los 90 días previos.

👉🏻La medida regirá desde hoy pic.twitter.com/B8k4vxdDkc

— Finanzas Argy 🇦🇷📈⚡ (@FinanzasArgy) July 22, 2022

The idea to stop money from leaving the country which can be done with crypto and dollars, won’t be an option for the people of Argentina. If a person or a company has pesos in their accounts and they use them to buy US Dollars, they can now use them to invest in crypto like BTC. This means that the US dollars will leave the country and it will be bad for the economy of the country. In the south American antion which is the third biggest in Latin America, the country’ administration is enhancing currency controls and it is raising interest rates to get inflation under control.

Argentina has one of the highest inflation rates in the world and now, the annual inflation in the country stands at 64% which is the second highest in the region after Venezuela which has the highest inflation rate. Crypto is huge in Argentina because of the inflation rate. Bitcoin is a better choice than the peso that is losing value rapidly and the BTC users have claimed that the asset works as a hedge against inflation because the supply is capped at 21 million. Supporters like the Human Rights Foundation point to the troubled economies of the region as places where BTC finds its true use cases.

Back in May, Argentina’s biggest bank, Buenos Aires Banco Galicia, launched a service for customers and made BTC, ETH, XRP, and USD coin available to purchase which might not be popular anymore with the latest restrictions.

As recently reported, The Central Bank of Argentina has put the kibosh on financial institutions offering crypto trading days after two of the biggest banks said they will open up to digital assets. The BCRA said the move was to mitigate the risks that crypto poses to users and to the financial system due to the crypto’s high volatility, its use in money laundering, and the absence of regulatory safeguards.