argentina banks are to kiss crypto
Banco Galicia, one of Argentina’s leading private banks, announcement that it added a feature to the investment section of its app that allows customers to buy bitcoin (BTC), ether (ETH), USDC, and XRP. Currently, the bank allows its customers to buy and sell cryptocurrencies but not to withdraw or send them. With more than 4.2 million business and personal customers, Banco Galicia is one of the largest banks in the country.
In response to the announcement, Brubank tweeted that it has also implemented crypto trading features in the investment section of its website. Brubank, unlike Banco Galicia, is a less traditional bank as it is a fully digital and regulated bank that started in 2017. Brubank, according to the CriptoNoticias website, offers bitcoin and ether trading, as well than the USD Coin (USDC) and DAI stablecoins.
Why to have banks made this decision?
Allowing customers to buy Bitcoin and other crypto through their bank could help Argentinians stay ahead of its crushing inflation. According to the most recent data from economic data tracker Trading Economics, Argentina inflation rate in April was 55%, which may incentivize users to deposit funds into assets such as Bitcoin or stablecoins.
Argentinian banks took a beating last year, which mainly hurt the small banks in the country and saw the profits of the big banks drop significantly. Perhaps turning to cryptocurrency will provide an additional revenue stream because, instead of trading on crypto exchanges, banks will be able to collect more fees from their customers.