Argentina Criminalizes Peso Burning
Argentina has taken a bold step to combat a unique form of currency-related rivalry that has escalated within its soccer stadiums. The government’s recent proclamation has criminalized the burning or tearing of the country’s fiat currency, the peso (ARS), within Buenos Aires soccer arenas. This move comes as Argentina grapples with soaring inflation rates, exceeding 100% year-on-year, and a severe economic crisis.
Argentina's Agency for the Prevention of Violence in Sport announced this week that it will punish foreign soccer fans who desecrate the country's bank notes. #CGTNAmerica pic.twitter.com/GzO37osIr6
— CGTN America (@cgtnamerica) August 12, 2023
The decision was prompted by a disturbing trend of soccer fans from neighbouring countries deliberately tearing and burning peso notes during matches to taunt their Argentine rivals. In response, the Agency for the Prevention of Violence in Sports has announced that law enforcement will take action against offenders, leading to potential arrests and up to one month of imprisonment. Clubs associated with the offenders may also face monetary penalties.
Argentina’s Economic Woes
The prohibition arrives amidst Argentina’s struggle with a deteriorating economic landscape. Essential goods’ prices have more than doubled since mid-2022, as reported by the Argentina Institute of Statistics. The nation’s economic challenges have coincided with a surge in citizens turning to cryptocurrencies to navigate capital controls and restrictions on fund movements. This shift has led to a substantial rise in crypto ownership, with over 5.6% of Argentinians now possessing cryptocurrencies, up from 2.9% just a year ago. This surge equates to approximately 1.2 million new crypto users in the country over the past year.
Read More: Visa Explores Direct Blockchain Gas Fee Payments
Reports from March 2022 even indicated that many Argentinians were opting to receive their salaries in Bitcoin (BTC), reflecting their dwindling confidence in the peso. Currently, 1 BTC is equivalent to about 8.4 million ARS. Despite the economic challenges, Argentina has become a notable player in the cryptocurrency world. It ranks 13th globally among countries with high crypto usage and constitutes around 8% of the global crypto user base, as per Statista data. As Argentina grapples with economic turmoil and evolving financial practices, its stance on currency preservation and cryptocurrency usage continues to shape its financial landscape.
