The Argentinian public have begun to show a great demand for digital assets after the country’s Central Bank limited the amount of USD a resident can buy on a monthly basis. While trading volumes of digital assets in Argentine remain relatively low, the premiums to buy digital currencies are high, signaling that demand for such transactions is growing.
This situation is reasonable given the restrictions put into place by the country’s Central Bank, limiting access to “safe haven” assets, such as the USD. The latest trading figures from LocalBitcoins show a weekly turnover of $240 000 (14.15M ARS), which is a growth of 44,000 from the previous week. At the same time, the premium being paid by investors for Bitcoin is reportedly 12%.
If the economic situation in the country does not begin to improve and further restrictions are placed on “safe haven” assets, we would expect the demand for digital currencies in the country to grow, but perhaps not necessarily see a large spike in trading, as the costs for such trading are most likely still prohibitive to many Argentinian residents.