Argentina central bank has banned the citizens from buying Cryptocurrency via credit cards as on November 1. What followed was the very opposite what the government expected , from the date the ban was imposed the country has traded the highest amount of Bitcoin on the peer- peer platform LocalBitcoin according to Coin Dance. One of the biggest factor that has resulted in the fast adoption of Cryptocurrency is the instability of the Argentinean Peso. In just two years the value of the Peso against the world’s base currency has declined by over 85%. The confidence of the currency is very low among the residents of the country and they have turned to convert their spare peso into relatively stable dollars.
Image Source: www.leftovercurrency.com
The country’s sovereign currency is the Peso which people earn and spend but it is the dollar that defines the goods and services in the country. The daily exchange rate of the Peso is mentioned in the news along with the traffic and weather conditions. Tim Draper looking at the economic conditions of the Argentina had advised the president to introduce the Bitcoin and other Cryptocurrency and legalize it. He counseled the president on crypto’s potential to improve the devaluation of the Argentine peso and relieve the association of brain drain.
Daniel Popa CEO of Stablecoin told that the Bitcoin act as a store of value and it cannot be manipulated by the government and also is a decentralized form. But also went on to add that bitcoin also does not offer predictability but there is a need for a stable universally accepted stablecoin that can be used by people suffering from the negative economic impacts that stem from natural disasters, health crisis and disruptive monetary policies.
Source: Cryptocurrency Market
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