Argentina Blocks Banks From Facilitating Crypto Services
The Central Bank of Argentina aims to minimize the underlying risks crypto poses to investors and “to the financial system as a whole” and cited concerns such as money laundering, high volatility, and lack of clear regulations. It says:
“Financial entities cannot perform or facilitate their clients to perform transactions with digital assets, including cryptographic assets and those whose returns are determined according to the variations they record, which are not regulated by national authority and authorized by the Bank.”
In particular, the move only takes place within two days of the nation two of the biggest banks have hinted at their plans for crypto-asset offerings. On Monday, major banks Banco Galicia and Brubank announced plans to allow their customers to buy Bitcoin (BTC), Ethereum (ETH), Ripple (XRP) and USD Coin (USDC) from their platforms. .
A survey conducted by Banco Galicia determined that 60% of respondents requested easier access to cryptocurrencies, prompting the decision to introduce crypto trading.
Growing Adoption, Growing Concerns
According to Data According to Argentina’s statistics department, INDEC, inflation rose to 6.7% in March, the highest rate in 20 years. This makes inflation the most important factor for Argentinians to turn to crypto. Statistical reports that 21% of respondents in Argentina owned or used a cryptocurrency in 2021, making it the sixth highest adoption rate in the world.
On the other hand, the central bank has long been skeptical of cryptocurrency, issuing a public risk warning in May last year, citing concerns about volatility and money laundering.
The central bank’s stance contradicts that of the mayor of Sorradino, in Argentina’s Santa Fe province. graphics cards.