Argentina is banning inflation-stricken country Bitcoin Traders refused to buy US dollars at the official exchange rate in order to tame capital flight.
The country’s central bank in Thursday’s announcement Told that who bought Bitcoin Or any other digital asset with the peso in the last 90 days will not be able to access the single free exchange market (mercado nico y libre de Cambio-MULC) and buy dollars at the official rate.
The idea is to prevent money leaving the country – which can easily be done with cryptocurrency and dollars. If a person or company has pesos in an account, and they use them to buy US dollars from a regulated exchange, they can use that dollar to invest in cryptocurrencies like bitcoin.
This would mean that the US dollar would, in a sense, leave the country, which would be bad for the economy of Argentina. In the South American nation – which has the third largest economy in Latin America – the country’s centre-left administration of President Alberto Fernandez is tightening currency controls and raising interest rates to bring inflation under control.
Argentina has the highest inflation rate in the world. Right now, annual inflation in the South American country is 64%, according to the central bank. It is the second largest in the region after troubled Venezuela, which has one of the highest inflation rates in the world.
Crypto is big in Argentina due to the country’s inflation rate: Bitcoin is arguably a better bet than the Argentine peso, which is rapidly losing value as a currency. Bitcoiners have long claimed that the asset acts as a hedge against inflation as the supply of digital coins is limited at 21 million. and supporters like Human Rights Foundation Regulars point to the troubled economies of South America as places where bitcoin finds its real use case.
In May, Argentina’s largest bank, Buenos Aires-based Banco Galicia, launched A crypto service, making it available for customers to buy bitcoin, ethereum, USD coin and XRP—a service that may no longer be as popular with new central bank restrictions.
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