Cash shortages, bank closures and ATMs running out of funds seems to be the new norm for many countries, and recently increased capital controls in Argentina are further testament to this unsettling trend. Sunday’s election of president Alberto Fernández has resulted in Argentine account holders being limited to USD purchases of $200 via bank account and $100 via cash monthly. As protests continue to mount worldwide, the signs don’t look good for fiat money or the people who hold it.
In the Name of Saving Central Banks
Unlike a normal business in the private sector, government organizations and the institutions embedded therein are often immune from market consequence. This fact was possibly hinted at by the creator of Bitcoin himself when he included the text “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks” in the genesis block. The Argentinian central bank crackdown on USD purchases is further proof of this notable lack of consequence for policy makers.
According to reports, the new limit on USD purchases in Argentina is designed to “preserve the reserves of the Central Bank.” The Central Bank of Argentina (BCRA)