Bitcoin becoming Argentina’s FX alternative

Author: Zoe Thomas | Published: 13 Aug 2015

Argentines are turning to bitcoin to preserve the value of their assets in the face of foreign exchange regulation and concerns about regulatory crackdowns on blue-chip bond swap transactions.

Argentina’s economy has struggled in the last few years and the government-imposed exchange rate has caused many individuals and business to lose value in their assets. Businesses are required to repatriate capital raised abroad and convert it to local pesos at the government exchange rate, which is fixed far below that of the black market.

By purchasing US dollar-denominated bonds in Argentina and then selling them aboard, the seller can ensure they get access to dollars at the international market rate, which they are not required to bring back to Argentina. The central bank has...



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