Argentina criminalizes peso burning amid growing crypto use

Argentina has outlawed the burning or tearing of the country’s fiat currency, the peso, in Buenos Aires soccer stadiums.

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.

Its forex rate has also dropped dramatically, with 1000 ARS currently valued at $3.49. Earlier in the year, Argentina’s central bank issued a new 2000 peso note to prevent citizens from hauling vast amounts of cash for daily expenses.

But despite the move, data from financial markets analysts, Triple A, shows that more than 5.6% of Argentinians own cryptocurrency, up from 2.9% a year ago. It translates to about 1.2 million new crypto users in the country in the last 12 months.

In March 2022, media reports indicated that more Argentinians were opting to get paid in Bitcoin (BTC) as they lost faith in the peso. At the time of writing, 1 BTC was equivalent to about 8.4 million ARS.

Argentina currently ranks 13th among 146 countries where crypto use is most prevalent. Argentinians account for about 8% of global crypto users, per Statista.