Argentina: Bitcoin Just Received an Unintentional Boost

January 22, 2014
Argentina is adding more economic restrictions to overseas purchases.

According to the Associated Press, the government of Argentina is getting ready to add more restrictions to online purchases from foreign countries. Argentines are now limited to two purchases per year from outside the country, and they will have to fill out a large amount of extra paperwork if they want to go beyond that limit. Purchases that force an individual to crossover the maximum threshold are now considered imports. Argentines are already required to ask their government for permission before ordering goods from abroad, and they can end up paying upwards of 50% in taxes on those purchases.

Hurting Their Own Cause

The idea of micromanaging a macro economy has never worked, and you would think a country with Argentina’s history would have realized this by now. With the creation of Bitcoin, the people of this country now have the option to trade and purchase goods outside the government’s control. It seems that the government is hurting the Argentine Peso’s chances in the fight against Bitcoin with each passing day. Inflation and price controls are already hurting the peso’s chances in the battle against dollars and bitcoins, so these new economic restrictions are just going to make matters worse for the official currency. Outlawing something doesn’t remove it from reality; it only creates black markets. The national government needs to realize that there is now competition in the currency market from cryptocurrencies. Governments can no longer do whatever they want with monetary and financial regulations and expect their citizens to accept the consequences.

Creating Incentives for Bitcoin

It seems that the government of Argentina is working hard to create incentives for people to use bitcoins instead of pesos. A black market for dollars is already found throughout Argentina, and Bitcoin offers an even better option for people who want to get around the unjust financial regulations found in the South American country. While US Dollars in the form of dollars can hide financial activity on the street, it doesn’t help when you want to move large amounts of money out of the country or purchase international goods. As the government continues to crackdown on economic freedoms for the Argentine people, we can expect to see interest in Bitcoin to continue to grow in the country. Many Bitcoiners, including Andreas Antonopoulos, have spoken about the importance of Bitcoin in Argentina, and we are now seeing another reason as to why this country would be perfect for the next wave of massive Bitcoin adoption.

Last modified (UTC): April 20, 2014 18:28

Kyle Torpey @kyletorpey

Kyle is a freelance Bitcoin writer and the Marketing Director for Bitcloud. His work has been featured on Business Insider, VICE Motherboard, Let's Talk Bitcoin, and RT's Keiser Report . You can follow him on Twitter (@kyletorpey) or send him an email.