Analysis: Argentine central bank restricts national purchases of dollars, or stimulates local bitcoin demand

According to a report by Bloomberg on September 1, the Central Bank of Argentina imposed restrictions on the purchase of the US dollar to reinvigorate its falling French currency, the Argentine peso. According to a statement issued by the central bank on Sunday, the monthly purchase of dollars by Argentine individuals will be limited to less than $10,000, and any amount exceeding the limit will require special permission. In addition, exporters must settle their foreign exchange earnings in the local market within 5 days. No company is allowed to accumulate dollars. The central bank said that these measures are aimed at "maintaining exchange rate stability and protecting depositors." In recent years, Argentina has shown a strong interest in Bitcoin, and as the uncertainty surrounding economic growth intensifies, Bitcoin trading volume has accelerated. Last month, the country’s cryptocurrency exchanges showed a premium. Some speculate that the demand for bitcoin, an uncontrollable cross-border asset, should increase further. A large amount of data shows that the amount of Argentine pesos that Argentines traded on the peer-to-peer cryptocurrency platform increased last week, and this trend is likely to continue if the situation in the country is similar to Venezuela.