Argentina’s financial market is in trouble. After facing a significant bank closures, cash shortages and ATMs running out of funds, the increasing capital control in Argentina now hit the cryptocurrency real. The Central Bank of Argentina (CBA) debarred its citizens from purchasing Bitcoin (BTC) or other cryptocurrencies with credit cards.
MEASURES WERE TAKEN TO PRESERVE FOREX RESERVES
The Bank’s statement covered multiple industries, limiting or prohibiting the usage of credit cards. The cryptocurrency-related section reads:
“Acquisition of Bitcoin and cryptocurrencies: It is prohibited to purchase BTC with this payment method. The only remaining alternative for this investment is to do so with funds transferred from a bank account.”
As of now, it is uncertain whether the new rules apply for credit cards only, or the limitations and prohibition includes prepaid and debit cards. Such measures were taken in the name of preserving Argentina’s foreign exchange reserves.
CBA TO BLOCK USD, INCREASING EXCHANGE CONTROL
Industry experts believe the recent moves were made towards increasing the exchange control. Limitations or blockage of US Dollar entries are expected to follow. Earlier this week, the Bank placed limitations on the amounts Argentinians are allowed to buy each month, reducing the total amount from $10,000 to only $200.