Argentina’s Central Bank Bans Bitcoin Purchases With Credit Cards

Argentina’s Central Bank Bans Bitcoin Purchases With Credit Cards

Argentina’s central bank extends capital controls to ban the purchase of Bitcoin and cryptocurrency using credit cards.

After recently imposing limits on U.S. dollar purchases, the Central Bank of Argentina (BCA) announced Oct. 31, that citizens are prohibited from using credit cards to buy Bitcoin (BTC) or other cryptocurrencies. The news was initially reported by Cointelegraph Brazil on Nov. 1. 

All in the name of preserving forex reserves

The measures were published in a communication covering several industries in which credit card use was limited or prohibited. The section referring to cryptocurrency reads:

“Acquisition of Bitcoin and cryptocurrencies: It is prohibited to purchase BTC with this payment method. The only remaining alternative for this investment is to do so with funds transferred from a bank account.”

It is unclear whether the rules apply only to credit cards or if this includes debit and prepaid cards.

The BCA says that these measures are critical to preserving the country’s foreign exchange reserves.

Bitcoin just part of a wide-ranging crackdown

According to experts, the central bank intends to block the entry of dollars into the country, seeking to have stronger exchange control. 

This follows a move by the BCA earlier this week, which limited the amount of U.S. Dollars Argentinian citizens could buy each month. The maximum amount was reduced from $10,000 to just $200.

At the time this caused a spike in Bitcoin trading, which these latest measures would seem to partially address.

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