Argentina Imposes Capital Controls; Strong Case For Bitcoin Adoption

Argentina Imposes Capital Controls; Strong Case For Bitcoin Adoption

The government of Argentina has imposed capital controls on its citizens in a response to growing financial issues for the country. The South American country has limited dollar purchases to only $10k per month after $3 billion was drained out of their foreign currency reserves on Thursday and Friday alone. Is it time to switch to Bitcoin?

Argentina On Brink of Default

Argentinas national currency, the peso, has been in free fall the past few weeks as the government attempts to pay off their short term debts. The peso is down over 25% in the last month alone. Interest rates spiked heavily as the Argentinian central bank tried to control their debt, making the decision Wednesday to delay payments on the $7 billion of debt this year.


The decision comes from President Mauricio, who ran on the promise to get rid of state intervention in the economy. He is now doubling back on his ideals by imposing currency controls. The current political landscape in Argentina is suggesting Mauricio and his party will lose power in the upcoming October election. This fact is scaring many investors in the country.

The opposition has been calling for currency controls, claiming that the government was in a virtual default. The reserves of the central bank fell nearly $12 billion due to political uncertainty

Bitcoin as a safe-haven

One of Bitcoins most attractive aspects is the fact that it isnt controlled by any one party. Traditional fiat currencies are controlled by the state, allowing them full control over the countrys monetary policy. They can adjust inflation rates, change interest rates, and, in this case specifically, implement currency controls to tell their citizens what they can or cant do with their money.


If the peso continues to drop, we may see another fiat currency undergo hyperinflation. The citizens will continue to lose confidence in their state currency and look for other alternatives. And if these restrictions stay in place or get worse, the dollar will not be an option.

Bitcoin and other cryptocurrencies might be the safe haven the Argentinian people need as theyre faced with this economic uncertainty. A plummeting currency wont be accepted by very many people as theres no guarantee that itll be worth anything the next day. Bitcoin could fill the void as people face more and more difficulties trying to secure their wealth.

What do you think about Argentinas new policy? Could Bitcoin help its citizens? Let us know in the comments below!

Images courtesy of Shutterstock, Bitcoinist Media Library

The post Argentina Imposes Capital Controls; Strong Case For Bitcoin Adoption appeared first on Bitcoinist.com.

01.09.2019 / 14:40 22
Argentinas Peso Collapse Shows Governments Shouldnt Control Money Argentinas Peso Collapse Shows
Whenever bitcoin experiences a sharp drop or volatility, mainstream media analysts jump to declare that cryptocurrency isnt stable enough to be
Is Bitcoin an Option In Argentina as Stock Market Collapses Is Bitcoin an Option In Argentina as
There have been a number of cases recently where people have flocked to bitcoin as their own economies face uncertainty. China, Britain and Venezuela
Argentina: Bitcoin Bought at $20K Retained More Value Than the Peso Argentina: Bitcoin Bought at $20K
Bitcoin has proven to be a store-of-value in Argentina where you would have been better off buying BTC at its peak rather than hold the peso.
Argentina Central Banks Inability to Stop Inflation is Forcing People to Bitcoin Argentina Central Banks Inability to
As Argentinas inflation rate skyrockets to its highest level since 1992, people are increasingly turning to Bitcoin as an alternative. Inflation in
More Bitcoin ATMs for Argentina Amidst Countrys Financial Crisis More Bitcoin ATMs for Argentina Amidst
Two companies plan to install more Bitcoin ATMs for Argentina, amidst the countrys financial crisis. Bitcoin to the Rescue Argentinas financial
Zero to 30: Bitcoin ATMs Come to Argentina as Peso Dives and Inflation Soars Zero to 30: Bitcoin ATMs Come to
With inflation in Argentina expected to rise above 40 percent before the close of the year, the demand for bitcoin in the South American country has
Comments (0)
Add a comment
Comment on