To restrain foreign exchange evasion, Argentine Government reclassifies cryptocurrencies

English Jun 8, 2020

The Argentine crisis continues to widen, which has caused many citizens to use Bitcoin as a way to keep their economies safe, avoiding the depreciation that would occur if they kept them in force. To avoid the conversion and growth of the Bitcoin market in the country, the Argentine government has been doubling its efforts, this time changing the classification of cryptocurrencies to "net external assets".

The Central Bank of Argentina (BCRA) issued a resolution for financial institutions to compel their customers to declare assets convertible into foreign currency, including bitcoin and gold.

According to the Bitcoin Portal, the Central Bank's measure is to prevent the evasion of existing dollars in the country.

The Argentine government statement equated bitcoin and other cryptocurrencies with gold, investments in foreign public securities, funds in investment accounts with investment managers based abroad and funds from payment service providers.

The Argentine also mentions that the net external assets allow the dollar to be immediately available.

“The net external assets will be considered, among others: holdings of notes and coins in foreign currency, cash in gold coins or good delivery bars, demand deposits in foreign financial entities and other investments that allow immediate availability of foreign currency” , according to the resolution.

Bitcoin Argentina co-founder Franco Amati commented on his twitter: “The Central Bank of Argentina has issued new regulations involving digital currencies (and many other assets). Now you cannot make electronic transfers abroad (use the “foreign exchange market”) if you have digital currencies (“crypto”). You will need to sell them first. ”

According to Amati, the government avoids the evasion of dollars and for that the “person must use any liquid assets that he has” before using existing dollars in the country.

The evasion of the dollar may limit the use of bitcoin and stablecoins by large companies, as they are the ones who must pay providers abroad.

However, the decision will also affect individuals, as they must seek suppliers abroad with values ​​in excess of US $ 200 according to Amati.


Morel Hernandes

Writer passionate about politics, economics, blockchain and crypto-currencies.