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HomeNewsArgentina Opens Doors to a New Relationship Between Banks and Bitcoin

Argentina Opens Doors to a New Relationship Between Banks and Bitcoin

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  • The Argentine Central Bank is considering lifting the existing ban on cryptocurrency services for banks and wallets.
  • It is expected that companies in the country will also include Bitcoin in their treasuries.

In Argentina, the cryptocurrency ecosystem is eagerly awaiting a potential lifting of the ban on cryptocurrency services for banks and wallets. Under the leadership of the new central bank board, headed by economist Federico Furiase, there is hope that Bitcoin (BTC) and other cryptocurrencies will finally find their way into the traditional financial system.

The current situation is the result of regulations issued in 2022 and 2023 by the central bank. These bans were introduced after Banco Galicia and Brubank started offering Bitcoin investments to their customers. The central bank responded with a regulatory statement advising against investments in cryptocurrencies through the country’s financial system. Later, the ban was extended to wallets and payment service providers.

With the election of Javier Milei as president, new hope arose. Milei, known for his libertarian ideas and his advocacy for the free use of currencies, has expressed positive views on Bitcoin on several occasions. Although he does not call himself a “Bitcoiner,” he has indicated that payments with BTC will be allowed in a regime of free currency competition.

Global Trends and the Pressure for Change

Despite Milei’s positive stance, the central bank’s ban remains in effect. This contrasts with a global trend where more and more commercial banks are establishing a close relationship with the Bitcoin industry. These banks offer services such as custody and trading of cryptocurrencies and are increasing their own BTC holdings on their balance sheets.

 Although the lifting of the ban is still pending, there are positive signals. Recent regulations enabling the laundering of cryptocurrencies and the establishment of a register for Bitcoin exchanges point to a growing recognition of cryptocurrencies. Furthermore, there is growing interest from companies in Bitcoin, especially in the B2B sector. Companies like Mercado Libre have already made significant profits from their Bitcoin investments, and others are considering adding BTC to their treasuries.

The Future of Bitcoin in Argentina

The lifting of the ban on cryptocurrency services for banks and wallets could mark a turning point for Bitcoin in Argentina. It would pave the way for wider acceptance and use of Bitcoin and put Argentina in a leading position in the Latin American cryptocurrency landscape. The hopes of the Argentine cryptocurrency and fintech sector now rest on the central bank and its willingness to adapt to the changing global financial landscape.

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Bhushan Akolkar
Bhushan Akolkar
Bhushan is a FinTech enthusiast and possesses a strong aptitude for understanding financial markets. His interest in economics and finance has drawn his attention to the emerging Blockchain Technology and Cryptocurrency markets. He holds a Bachelor of Technology in Electrical, Electronics, and Communications Engineering. He is continually engaged in a learning process, keeping himself motivated by sharing his acquired knowledge. In his free time, he enjoys reading thriller fiction novels and occasionally explores his culinary skills. Business Email: [email protected] Phone: +49 160 92211628
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