Amid a turbulent 365-day period where the Argentine fiat currency, the Peso, has lost over half of its value against the dollar, the country has reportedly imposed new capital control measures.
A local news agency, Clarin, confirmed the development on Sunday, noting that Argentina introduced new measures to limit its citizen’s access to foreign currency.
Under the new arrangements, individuals will not be able to buy more than 10,000 USD monthly for savings while companies will not be allowed to hold a reserve in the foreign currency.
To be fair, the new capital control measures represent an improvement in older laws which pegged the purchase limit for individuals at $2,000.
It also removes a hurdle that required that individuals present to the country’s revenue service (AFIP), evidence to justify their income before they can purchase Dollars.
However, the raised limits, although attractive under the legacy financial system, provides a reminder of the freedom that Bitcoin brings to its holders despite its current highly volatile nature.
While Argentines are now legally barred from purchasing above $10,000 monthly, the Bitcoin network does not place a cap on the number of units that anyone can hold.
Also, there is no limit to the amount that can be transacted within a particular time frame, a feature that understandably favors bad actors but also promotes financial equality and freedom.
Further, the fact that the Argentine Peso is regularly losing its value against the US Dollar also provides another reason while storing wealth in censorship-free money like Bitcoin may be a better option for individuals living in a regime with purported little to no economic growth.
Time for Plan Bitcoin?
It is yet unclear at this point whether Argentina’s restriction on foreign currency purchase will affect its citizenry’s exposure to Bitcoin, even though it will not be a surprise if such a move happens.
Either way, the latest capital control measures have highlighted Bitcoin’s strength and raises hope that soon, more than a few Argentines will consider the cryptocurrency as a ‘safe-haven asset’ amid the growing economic uncertainties.