• Argentina’s central bank has banned payment providers from offering crypto transactions, citing a need to reduce the country’s exposure to digital assets.
• The ban affects all cryptocurrencies, which are not regulated in Argentina.
• Bitcoin is increasingly popular in the country due to hyperinflation and devaluation of the Argentine peso.
Argentina’s Central Bank Bans Crypto Transactions
Argentina’s central bank has issued a ban on payment providers offering crypto transactions, claiming it will reduce the country’s exposure to digital assets. Payment fintechs and financial institutions are now subject to the same rules as part of this decision. All cryptocurrencies, which are not regulated in Argentina, are affected by this ban.
Reaction From Fintech Chamber
The local fintech chamber urged the government to reconsider its decision, arguing that it limits access to beneficial technology for society. Despite their plea, there has yet been no change in policy from the central bank or government officials regarding this matter.
Rise Of Bitcoin In Argentina
Bitcoin is becoming increasingly popular in Argentina due to both hyperinflation and devaluation of its national currency –the Argentine Peso– over the past year. April saw record high prices for BTC/ARS exchange rates, with an increase of over 100% compared to last year’s figures.
Impact Of Ban On Crypto Industry
It remains unclear what effect this ban will have on cryptocurrency adoption in Argentina moving forward; some payment providers have so far declined comment on this decision while others remain hopeful that a more positive outcome can be reached through further dialogue between authorities and industry stakeholders.
In conclusion, while cryptocurrency regulation remains largely nonexistent in Argentina at present time, its citizens must now abide by new regulations set forth by their central bank regarding payments made through crypto services –which could have significant implications within the local economy going forward.