Argentina Bans Burning Peso As Crypto Starts To Take Root

August 13, 2023 5:20 am Comments

The Argentinian government issued a new law that criminalizes the destruction of the Argentine Peso as inflation rates have hit record highs in the country.

The value of the ARS has hit so low that opposing football teams have been burning the currency during games to make a mockery of the country.

Argentina Institute of Statistics reported the cost of goods has increased over 50% since 2022 which has left the country in an economic crisis.

Many people in Argentina are now turning to cryptocurrency to transfer funds overseas and make investments due to the ARS sinking.

Per Crypto News:

On Aug. 10, the Argentinian government issued a proclamation criminalizing any form of destruction of the peso (ARS), even as year-on-year inflation in the South American country surpassed 100%.

Soccer fans from neighboring countries have been tearing and burning peso notes in stadiums to provoke their Argentine rivals. In response, the Agency for the Prevention of Violence in Sports has stated that law enforcement officers would arrest offenders, and they could serve up to one month in prison, with their clubs also liable for monetary penalties.

Argentina is in a severe economic crisis. Prices for essential goods more than doubled since mid-2022, according to data from the Argentina Institute of Statistics.

The country’s worsening economic condition coincides with steady growth in the number of citizens using crypto to circumvent capital controls. This has made it difficult to move funds in and out of Argentina.

Per Business Insider:

Argentinian authorities are clamping down on soccer fans that mock the country’s spiraling inflation.

Some soccer fans have taken to tearing up and burning bank bills at matches in Argentina as a way of ridiculing the value of the Argentine peso.

Argentina’s Agency for the Prevention of Violence in Sport said that soccer fans caught damaging the bills could face up to 30 days in prison, local media outlet LT7 Noticias reported.

The agency said that the action was in violation of articles 10 and 14 of law 11.929, which stipulates that those who break the law “shall be punished with 15 to 30 days of arrest” for causing an “incitement to quarrel,” per the report.

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