Argentina Announces Plans To Put Strict Controls On Digital Asset Trading

Argentina’s Financial Information Unit has declared that they are planning to introduce tougher curbs on cryptocurrency trading across the nation. The South American country asserts that the aforementioned actions are warranted as cryptocurrency is giving rise to corruption and money laundering. Nevertheless, as per some critics, the government’s true motivations behind censuring virtual currency seems to be connected with the downfall of the Argentinian Peso, its national fiat currency.

Last year, the Argentinian Peso was already very weak with over fifty percent inflation. This situation was even prior to the onset of the coronavirus pandemic. Present day, the nation’s government has defaulted on its debt, which will further lead to a surge in hyperinflation.

As a response to the aforementioned situation, Argentinians are rushing into Bitcoin and other cryptocurrencies for protecting their funds against hyperinflation. This seems to be the actual reason why the government intends to overpower the digital asset trade. Primarily, the government doubts that the seepage of funds from ARS into crypto assets might hasten the downfall of the national fiat.

Undeniably, other nations that were going through hyperinflation, Zimbabwe and Iran, took analogous measures to prohibit cryptocurrency in order to defend their waning fiat currencies. Nevertheless, history has established that prohibiting cryptocurrency can’t save a waning national fiat currency.