Argentina, a country hit by ultra-high inflation, is limiting Bitcoin From traders buying US dollars at official exchange rates to curb capital flight.
With Thursday’s announcement, the central bank of the country Said The person who bought it Bitcoin Alternatively, other digital assets that have used the peso in the last 90 days cannot access the single free forex market (Mercadonicoy Libre de CambioMULC) to buy dollars at official rates.
The idea is to stop the money leaving the country-this can easily be done with cryptocurrencies and dollars. If you have pesos in your personal or corporate account and you use them to buy US dollars from regulated exchanges, you can use those dollars to invest in cryptocurrencies such as Bitcoin.
This in a sense means that the US dollar will leave the country, which will have a negative impact on Argentina’s economy. In South America, Latin America’s third-largest economy, President Alberto Fernandez’s central left administration is tightening currency restrictions and raising interest rates to curb inflation.
Argentina has one of the highest inflation rates in the world. Currently, the annual inflation rate in South American countries is 64%, according to To the central bank. It is the second highest country in the region after Venezuela, which was hit by the world’s highest inflation crisis.
Cryptocurrencies are big in Argentina due to high inflation. Bitcoin is definitely a better bet than the Argentine peso, which is rapidly losing its value as a currency. Bitcoin vendors have long argued that assets act as a hedge against inflation as the supply of digital coins is limited to 21 million. and, Human Rights Foundation Bitcoin routinely points out the troubled economies of South America as a place to find its true use cases.
In May, Banco Galicia, based in Buenos Aires, Argentina’s largest bank, announced Release Cryptographic service for customers. Makes it possible to buy Bitcoin, Ethereum, USD coins and XRP. This is a service that may not be as popular today due to new central bank restrictions.
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