Wednesday, 05 August 2020

Argentina’s Central Bank Issues Ban on Bitcoin Purchases with Credit Cards

- Argentina's central bank is prohibiting the use of credit cards to purchase bitcoin and crypto-assets.
- Investors can still transfer money from their bank account to make BTC purchases.

Argentina’s central bank has banned the use of credit cards to purchase bitcoin and other cryptoassets.

According to a report by Brazilian news outlet Portal do Bitcoin, the Central Bank of Argentina (BCA) is prohibiting citizens from using credits cards to purchase bitcoin. The decision comes less than a week after the central bank imposed a $200 limit on dollar purchases.

Multiple industries, including cryptocurrency, were affected by the prohibition on credit card purchases. According to the release,

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.

While the central bank’s decision directly impacts the sale of crypto-assets, it’s not outright banning bitcoin. Argentinian investors can still purchase BTC by transferring money from their bank account to the seller. The new prohibition only applies to purchases made by credit cards. It is not year clear whether the same policy will apply to debit transactions, given the countries crackdown on US dollar purchases over $200.

The BCA says the prohibition is critical to preserving foreign exchange reserves in the country.

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