Argentina is back on the radar for Bitcoin (BTC) proponents after sudden capital controls cut U.S. dollar purchasing ability by 98%.

Central depository financial institution: $200 limit "temporary"

As news outlets reported, including Cointelegraph Brasil on Oct. 28, the country'due south fundamental bank has opted to reduce the amount of dollars a saver can purchase each month from $10,000 to merely $200.

A drop of 98%, the stringent new rules appeared on Sunday, the mean solar day voters elected a new president. The previous $10,000 limit itself came into being as a result of capital controls in September.

Argentine republic has seen the value of its fiat currency, the Argentine peso (ARS), fall dramatically this yr, with annual aggrandizement exceeding 50%.

In a statement, the Central Bank of Argentine republic (BCRA) said the reduced dollar admission would last for two months.

"Given the current degree of uncertainty, the Lath of Directors of the BCRA decided to accept a series of measures this Sun that seek to preserve the reserves of the Central Banking company. The measures announced are temporary, until December 2022," it said in a statement.

The banking concern connected:

"It establishes a new limit of $200 per month for dollar purchases for individuals with a banking company account and $100 for the amount of dollars that can be purchased in cash. These limits are not cumulative."

Argentine republic sets top three calendar week on Localbitcoins

The move came as Argentina posted its 3rd-strongest week on record for Bitcoin trading on P2P platform Localbitcoins.

According to information from Money Trip the light fantastic, for the calendar week ending Oct. 26, accounts traded 14.15 million ARS ($240,000). It should be noted that the tally in BTC terms was not loftier, with the volumes highlighting the continued weakness in the peso.

Localbitcoins trading volumes for Argentine peso (ARS)

Localbitcoins trading volumes for Argentine peso (ARS). Source: Coin Trip the light fantastic toe

All the same, Bitcoin commentators were quick to bespeak out the benefits of switching to the decentralized cryptocurrency.

"It'southward not your money if you need permission to employ information technology," Twitter analyst Rhythm summarized on Mon.

The previous president had appeared more interested in Bitcoin's potential. Equally Cointelegraph reported, Mauricio Macri met with venture capitalist Tim Draper in March, during which the pair reportedly struck a deal to prefer Bitcoin equally Argentine republic's currency if it performed strongly enough compared to the peso.

Since then, other capital control experiments accept garnered like reactions from Bitcoin spheres, notably the shutdown of Lebanese republic'southward banks last week.