[2019-09-02] Argentina capital controls, a strong case for bitcoin
I reckon that there might be a stronger case for the Argentinian government to hold bitcoin in their reserves if they want to remove themselves of state intervention.
Some of you might not know this but if a powerful country like America or China loans US dollars to a 3rd world country, it is not because those powerful countries want to help. The 3rd world country borrowing the money has given America or China some control in its economy or policy making in exchange.
The IMF and the World Bank are also 2 institutions that make these kind of deals.
The government of Argentina has imposed capital controls on its citizens in a response to growing financial issues for the country. The South American country has limited dollar purchases to only $10k per month after $3 billion was drained out of their foreign currency reserves on Thursday and Friday alone. Is it time to switch to Bitcoin?
Argentinas national currency, the peso, has been in free fall the past few weeks as the government attempts to pay off their short term debts. The peso is down over 25% in the last month alone. Interest rates spiked heavily as the Argentinian central bank tried to control their debt, making the decision Wednesday to delay payments on the $7 billion of debt this year.
The decision comes from President Mauricio, who ran on the promise to get rid of state intervention in the economy. He is now doubling back on his ideals by imposing currency controls. The current political landscape in Argentina is suggesting Mauricio and his party will lose power in the upcoming October election. This fact is scaring many investors in the country.
The opposition has been calling for currency controls, claiming that the government was in a virtual default. The reserves of the central bank fell nearly $12 billion due to political uncertainty
Read in full https://bitcoinist.com/argentina-imposes-capital-controls-strong-case-for-bitcoin-adoption/
Some of you might not know this but if a powerful country like America or China loans US dollars to a 3rd world country, it is not because those powerful countries want to help. The 3rd world country borrowing the money has given America or China some control in its economy or policy making in exchange.
The IMF and the World Bank are also 2 institutions that make these kind of deals.
The government of Argentina has imposed capital controls on its citizens in a response to growing financial issues for the country. The South American country has limited dollar purchases to only $10k per month after $3 billion was drained out of their foreign currency reserves on Thursday and Friday alone. Is it time to switch to Bitcoin?
Argentinas national currency, the peso, has been in free fall the past few weeks as the government attempts to pay off their short term debts. The peso is down over 25% in the last month alone. Interest rates spiked heavily as the Argentinian central bank tried to control their debt, making the decision Wednesday to delay payments on the $7 billion of debt this year.
The decision comes from President Mauricio, who ran on the promise to get rid of state intervention in the economy. He is now doubling back on his ideals by imposing currency controls. The current political landscape in Argentina is suggesting Mauricio and his party will lose power in the upcoming October election. This fact is scaring many investors in the country.
The opposition has been calling for currency controls, claiming that the government was in a virtual default. The reserves of the central bank fell nearly $12 billion due to political uncertainty
Read in full https://bitcoinist.com/argentina-imposes-capital-controls-strong-case-for-bitcoin-adoption/