The initiative aims to combat the outflow of capital from the country with the help of cryptocurrencies and the US dollar. The Central Bank of Argentina (BCRA) has restricted crypto traders from accessing the single currency exchange market and from buying US dollars at the official rate.
The ban applies to anyone who has purchased bitcoin or other digital assets using the Argentine peso in the last 90 days. The initiative aims to combat the outflow of capital from the country with the help of cryptocurrencies and the US dollar.
Thus, the Argentine government is trying to tighten foreign exchange controls and raise interest rates to control inflation. As of June 2022, annual inflation in the country was 64%, one of the highest rates in the world, according to BCRA data.
In early July, the unexpected resignation of Argentine Economy Minister Martin Guzmán sparked a boom in demand for stablecoins on local bitcoin exchanges. The local regulator is trying to bring down the hype by banning local credit institutions from offering customers services related to digital assets.