The central bank in Argentina had banned consumers from purchasing Bitcoin (BTC) and other cryptocurrency with credit cards on November 1 – after which followed a backfire in the country. The latest cryptocurrency news show that Argentinians want BTC and over the past two weeks, the country has traded the highest amount of Bitcoins on the peer-to-peer platform LocalBitcoins as data shows.
According to the charts which are visible on many data aggregators, Argentina has a fragile economy right now and one of the biggest factors in the high adoption of crypto in the country is the high volatility of the Argentine peso. In the past five years, the value of the peso has fallen by 85% – which is why Argentinians want something more stable.
The truth is, residents of the country have had little confidence in their currency and favoured to convert their spare pesos into relatively stable dollars. However, the peso is Argentina’s sovereign currency which people earn and spend all the time. Still, it is the US dollar that defines the value of goods and services, while the peso-dollar exchange rate is making the news all the time alongside weather and traffic reports.
While Argentinians want BTC and to trade crypto, the authorities are uncertain about the future. One of the analysts and crypto moguls who offered advice was the crypto bull Tim Draper, who told the president of Argentina back in March 2019 to legalize Bitcoin in order to improve the country’s economic situation. Draper counselled the president and said that there is a potential to improve the devaluation of the Argentine peso and relieve the brain drain.
The CEO of the Anchor stablecoin, Daniel Popa, also had his say about the situation in the South American country. Argentinians want BTC and trust crypto more as a store of value than the peso mostly because Bitcoin cannot be manipulated by the government.
“Unfortunately, bitcoin does not offer predictability, underlining the ongoing need for a universally-accepted stablecoin and financial standard that could be adopted by anyone in the world, including those suffering from the negative economic impacts that stem from war, natural disasters, health crises, and disruptive monetary policies,” Popa added.
On September 1, the Central Bank of Argentina had imposed restrictions on US dollar purchases in order to revive the plunging peso.
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