The authorities of Argentina tighten their control over capital, limiting the freedom of citizens and businesses in terms of buying foreign currency. Against this background, citizens of the South American country are increasingly paying attention to bitcoin.
According to Bloomberg, this step was taken by the authorities due to the fact that the Argentine peso fell significantly in price against major fiat currencies, for example, to the US dollar.
Recently, Argentina has been showing an increase in interest in bitcoin, with trade volumes increasing as uncertainty in the economy grows.
Currently, for individuals, access to hard currency is limited to only $ 10,000. The restriction was imposed due to the large number of people wishing to get rid of the local currency. Starting from August 2, the Argentine peso against the dollar fell by 34%.
Therefore, it is believed that the demand for bitcoin as an international asset that cannot be controlled should increase even more.
“Buy bitcoin,” cryptocurrency fan and lawyer Preston Byrne tweeted.
According to information, Argentines prefer to work on the P2P site of Localbitcoins, constantly increasing transaction volumes. This trend may continue if circumstances develop in the same way as in Venezuela.
The economic problems of Argentina may not coincide with the economic problems of Venezuela, however, Bitcoin supporters predicted the onset of the crisis.
Earlier this year, billionaire investor Tim Draper even met with the country’s president and argued that Bitcoin would show better results than the Argentine peso. In case of victory, he demanded that Argentina abandon the peso altogether, accepting Bitcoin as the new official state currency.