On Thursday, May 5, the Central Bank of Argentina (BCRA) announced that financial institutions cannot allow their customers to transact with digital assets, just days after the two banks announced they would open trading in digital assets. crypto to customers.
Argentinian financial institutions banned for offering cryptocurrencies.
At the beginning of May, the 2 largest private Argentinian banks Brubank et Banco Galicia fully digital have both announced that they will offer cryptocurrency trading to clients via investment portals on their websites. However, the central bank intervenes by stating that financial entities in the country cannot authorize such servicesas crypto assets are unregulated.
The ban aims to mitigate the risks that cryptocurrencies pose to users and “the entire financial system”, citing their high volatility, use for money laundering and lack of regulatory safeguards.
The press release from BCRA noted : “The measures ordered by the board of directors of the BCRA are designed to mitigate the risks associated with the operation of these assets that may arise for users of financial services and the financial system as a whole”.
Related reading: A European regulator sees cryptocurrencies as a money laundering threat.
The growing adoption of cryptocurrencies in Argentina
According to the data analysis table of Statesman, 21% of respondents in Argentina own or used a cryptocurrency in 2021, the sixth highest adoption rate in the world and the highest in Americas.
Some Argentinians have turned to cryptocurrencies as an easier way to save money while in the face of the country’s high inflation rate and currency controls that were reinstated in 2019 by current President Alberto Fernández.
However, the Argentinian government has said it will discourage the use of cryptocurrencies as part of a restructuring agreement. the debt of almost 45 billion dollars with the IMF or International Monetary Fund, in March. According to the memo, the government said it would take steps to “block the use of cryptocurrencies to prevent money laundering,informality and the disintermediation“, in addition to other measures aimed at strengthening the country’s financial resilience.
Central bank statement contradicts the plans of the mayor of Buenos Airesthe capital of Argentina. At the end of April, the mayor Horacio Rodríguez Larreta announced its intention to digitize the city, aiming to allow citizens to pay taxes in cryptocurrencies among other blockchain initiatives.
Bonus : Qredo is approved as an official Bitcoin service provider in El Salvador.