To further strengthen its foreign exchange control, the Central Bank of Argentina (BCA) has restricted the use of credit, debit, and prepaid cards abroad in the purchase of Bitcoin (BTC) and other services.
Local news outlet Infobae reports that the measures taken were part of efforts to preserve the nation’s foreign exchange reserve, thus limiting the citizen’s access to the United States Dollars (USD).
The report 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.”
The move also saw the restriction of credit cards in other industries that have affiliation with foreign markets, including gambling, payments, among others.
Going further, the BCA warns that beginning November, credit, debit, or prepaid card issuers must get regulatory approval from the country’s apex bank before issuing cards that would be used in cross-border settlements.
Per the report, the BCA reduced the cash advance a credit Bicardholder abroad can get from a financial institution to $50. This, according to the BCA, would mitigate the users’ purchasing power and enable them to pay the commission for each usage.
In a similar development, the BCA earlier this week reduced the monthly amount of purchases a citizen can make with the U.S. Dollar from $10,000 to a paltry $200.
“[The new measure] establishes a new limit of $200 per month for dollar purchases for individuals with a bank account and $100 for the amount of dollars that can be purchased in cash. These limits are not cumulative,” the statement read.
At the time, many experts expressed the belief that cryptocurrencies could provide an alternative to the economically-troubled nation. However, the current update from the BCA prohibiting citizens from purchasing Bitcoin with credit and debit cards only how bleak the future could be for Argentines if the country’s economic fortunes do not improve.
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