Central Bank of Argentina announced on October 31, that citizens are now prohibited from using credit cards to buy Bitcoin (BTC) or other cryptocurrencies, all of these after the recent imposed limits on U.S dollar purchases. The news was initially reported on Nov. 1 by Cointelegraph Brazil.
All about the preservation of the remaining forex reserves.
The measures were published in a communication covering several industries in which credit card use was limited and in some cases, 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.”
The rules are applied to credit cards but it is unclear whether debit and prepaid cards are also included.
Those measures are critical to preserving the country’s foreign exchange reserves, says BCA.
Seeking for stronger exchange control, experts say that the central bank would intend to block the entry of dollars into the country.
BCA earlier this week has made a move to limit the amount of U.S Dollars Argentinian citizens could buy each month. From the maximum amount of 10,000, they reduced it to just 200.
At the time this caused a spike in Bitcoin, which these latest measures would seem to address.