Topic: Bitcoin becoming a safehaven currency in Argentina - page 5. (Read 1682 times)

In my opinion, the prohibition of purchasing cryptocurrency using a credit card is temporary. The government and the central bank take the policy with the aim of:
- Instability of the cryptocurrency market causes the highest risk when allowing the use of credit cards to purchase cryptocurrency. Concern about bad credit. So the bank assumes it's easier for customers to buy cryptocurrency than it is to pay credit card bills.
- The crypto market volatility is very high, banks are afraid that if there is a price decline like last year the debtor's ability to pay their bills also decreases.

While in Argentina itself, the ban on buying bitcoin with a credit card is intended to maintain the country's foreign exchange reserves. Because the purchase of bitcoin with a credit card causes a negative balance in the international trade balance because foreign exchange flows out.

Foreign exchange reserves can be used to maintain the external balance of the value of the peso or in other words to maintain the balance of the exchange rate of the peso against foreign currencies. When a peso depreciates, its foreign exchange reserves can be used to intervene by pouring foreign exchange on the money market so that the peso is appreciated

The government is concerned about the flow of hot money to Argentina. This will be safe when the foreign exchange reserves also increase, this indicates that the inflow of funds held by the monetary authority. The thing to worry about is when a lot of capital comes in but the position of foreign exchange reserves does not increase significantly. If this happens then when capital is run out (reversal of capital) then the peso goes down (depreciation) but due to low foreign exchange reserves, the Central Bank is not able to secure it by intervening so that the peso value can be held back or even rise (appreciation) again.

Banks have their own reason to put up such restrictions. You should blame this on whales who have tried to put through some good amount of coins through their exchanges and came under investigation from authorities or the surveillance groups finding out some black market deals going through. Nobody can say for sure and nobody will.

Its sad for the people living there but truth is even though they cry foul, nobody is going to care.

And that is why some government around the world are trying to protect themselves by either banning or putting a regulatory framework because they don't want this to get out of hand.


We can't really say who's country is next.

And after Argentinian puts a restriction on bitcoin, Bitcoin Trading Volume Hits New ATH in Argentina After Central Bank Banned Purchasing Crypto with Credit Cards. This is going to be ugly, they might turn out to be the next Venezuela here, where people are using bitcoin in order to survived because their government is failing them.

For a while now, local bitcoins does not have the cash payment possibilty.
That doe snot mean that there are not other services that offer that option. This is normal for economies where they restrict buying other countries currency while their is depreciating, very irresponsible move from bank.

The Argentinian Central Bank is now putting restrictions on the purchase of bitcoin:

https://u.today/bitcoin-trading-volume-hits-new-ath-in-argentina-after-central-bank-banned-purchasing-crypto-with


To give you an idea of how worthless the Argentinian Peso is, Google says 1 Argentinian Peso = 0.0000018 bitcoin.

Thats right: 1 Argentinian Peso = 180 satoshi.

Bitcoins' decentralization is the whole purpose we use it, no person can change the way bitcoin is all by themselves, of course there are democratic ways we could do something about bitcoin like changing to segwit for example but that doesn't mean it is centralized, we as the people decided upon that as a whole and that is why it is a good method, it is not unchangeable fully stuck in 10 years ago type of code, it can be changed but it is also not in the control of just one person, it all depends on us and how we use the blockchain to vote on what we want to achieve and want to change with the code.

Hence, Argentina and all other places that have weak currencies can easily switch to bitcoin so that people could actually own a currency that can't be going down in value because of some idiot presidents bad moves.

I really doubt whether many users have that much coins in their wallets. Especially in countries such as Venezuela and Argentina, common people have witnessed their wealth get eroded to a fraction of the former self during the past few years. But do they really need 200K USD in cryptocurrency? For example, the Argentines can travel to Uruguay in train and it costs less than $100. The entire region is monolingual Spanish, and therefore they should not find much issues in finding a buyer or a seller.

The part B of your statement is not different from what the op is saying too, because Argentina has been a cryptocurrency friendly country and this make the op refer to it as safe haven, majority of their citizens would be without any fear of actually using cryptocurrency for their trades which I believe that the government of Argentina too will also be involved in using it to make trades to grow their economy.

The only thing that they have not very much accepted as other countries too have not accepted is the use of it as currency first and I think before they can really accept it as currency, virtually all countries would have to come together as one to actually decide in if they are confidence in using it as global currency or not and that is the only way it can become a safe haven everywhere.

This is not surprising at all. Why wouldn’t they go for Bitcoin? When the countries Fiat is crumbling on its head, one has to hide someplace safe. I think more countries will start joining the league, as lots of countries are in so much economic crisis.
Having said all that, I wonder what will become of countries like Argentina if more people begin to take cover with Bitcoin. How will that affect their economic condition? How would the Government react?

Sounds like an easy thing though. Worth trying if you brought a big bag of crypto to cash out in Argentina. Besides is it even legit? I thought that Bitcoin market cap price are all the same around the world. In addition is there even a way to cash it out like requesting it to someone on your behalf, and would be deliver it out to you. But sounds like not real though, well, those are just my thoughts.

It's happening, and some people predicted that Bitcoin will be a safe haven for many people who are sick from the banking sector. One by one country will start turning to cryptocurrencies, and people will turn to the safest and the best one, Bitcoin.
Let's wait for some time and see which country will be the next one. Can anyone predict from which country we will receive news about adoption in the next few months?

Bitcoin is very safe haven assets where ever you come from not only in Argentina but almost country have safety for saving bitcoin during you safe with correct wallet, but argentina have potential become friendly country for using bitcoin because they try for legal bitcoin s currency payment, only Argentina on Latin American country look serious with bitcoin as currency payment.

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The margin here is something an Argentina citizen can take advantage of or contact a friend outside Argentina to make a deal and since bitcoin breaks the barrier that comes with location or nationality, it becomes super easy to carry out such transaction.

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If it was that easy to do, the premium would have disappeared already. In most markets pricing anomalies are eliminated within days by speculators taking advantage of the arbitrage opportunity.

If a premium persists it's because it's too difficult to take advantage of it. In this case the person outside Argentina buys the bitcoin, sends it to the Argentinian who then sells it for dollars at a premium - but cannot withdraw more than $100. So it only works on really small amounts.

I do not agree with you. Bitcoin is not a universal currency, indeed its use is general but many countries prohibit the use of bitcoin as a means of payment, if there are loopholes in other countries not recognizing it as a legal payment instrument then there is no legal guarantee covering transactions using bitcoin.

Bitcoin is not easily available for anyone around the world. Many people do not know what bitcoin is and what blockchain is because many older generations do not know the world of financial technology. In addition, many countries do not have internet access to come into contact with blockchain technology.

Some of the weaknesses of bitcoin that we should pay attention to:
- Bitcoin acceptance and adoption is still minimal because actually bitcoin is an asset, not money.
- The value is very volatile.
- Prone to disappear due to human error.
- Scammers and criminals could use Bitcoin for their actions.

The margin here is something an Argentina citizen can take advantage of or contact a friend outside Argentina to make a deal and since bitcoin breaks the barrier that comes with location or nationality, it becomes super easy to carry out such transaction.

I don't think people are seeing bitcoin as a safe haven there despite the premium its trading. Rather, they are only having a surge in activity which makes demand more than supply thereby increasing the price and that is why the ripple effect is still not being felt outside Argentina where it is and I think its because of the limitation being place by their central bank which makes transacting internationally difficult.

What you say now is in complete opposition to the OP. Every Argentinian can buy max $300 every month since this is a new limit, and as far I know Argentina is not on Binance blacklist. In practice, it would then be possible to open an account there and trade by using some of Binance deposit methods listed here.

But this whole story about safe-haven currency falls into the water if we consider the average incomes in Argentina. Most have just enough money to cover their basic living expenses, and for most, investing in Bitcoin is something they can't afford.

Because Binance doesn't accept the argentinian peso. They'd have to somehow buy dollars FIRST before using Binance.

And the problem in Argentina is that you can't get hold of dollars.

Why would you think that fiat would be replaced? I don’t really think that fiat would be replaced really since it has its uses and is vital to our economy. Well it is possible that it would be deeply inetegrated into our daily living in the future but I can’t envision that in our life that fiat would be nowhere.

Any person with the access of internet can become owner of bitcoin. This is one of the beautiful things about bitcoin. It treats every single person with equality. No discrimination on the basis of region, religion or color. All the holders get same sort of treatment from bitcoin. That time is not far away when your this wish of getting rid of fiat will be fulfilled. We are moving towards the era of bitcoin.

I wonder why traders on those argentinian exchange don't just switch to internation exchanges like Binance. If bitcoin is trading at a premium of $10k++ when it's only around ~$9k+ on the global market, why buy premium?

I think arbitrage can't be done if they're limiting exchanges users to argentinians but on the flip side why don't they just buy cheaper from global markets.