Central Bank Of Argentina Bans Banks From Offering Bitcoin, Crypto Services

The ban comes just a few days after Argentina’s largest private bank announced it would start offering bitcoin to clients.

  • The central bank of Argentina has banned financial institutions from offering any services involving cryptocurrencies like bitcoin.
  • The ban comes days after the largest private bank in Argentina announced it would begin offering such services to its clients.
  • An alert released from the central bank last year showed its reluctance to cryptocurrencies, also exhibited in today’s ban.

The Central Bank of the Argentine Republic (BCRA) announced in a Thursday statement that financial institutions in the country are banned from offering clients any services involving Bitcoin or other cryptocurrencies.

The news comes on the heels of a $45 billion loan approval from the International Monetary Fund (IMF) for Argentina in March that stipulated the country should discourage the usage of bitcoin and cryptocurrency.

The largest private bank in Argentina days ago announced they would begin offering these very same products. Burbank, a digital bank in the country, also announced it would offer a line of support for bitcoin and other cryptocurrencies.

The shock of this decision from centralized authorities directly refutes the actions of many Argentinians as the country is reportedly ranked tenth in the world for cryptocurrency adoption, according to a report from chain analytics company Chanalysis.

The ongoing adoption of bitcoin and other cryptocurrencies within Argentina is largely attributed to the towering rates of inflation suffered by citizens. Reuters reported that the inflation data provided by the government last month showed annual inflation rates of 55% for the month. The report also states experts are anticipating 60% inflation for the year, which is set to take a toll on the almost 40% of the population reportedly living below poverty.

BCRA released an alert last year concerning the use of cryptocurrencies and the risks it saw associated with participating in the asset class, including high volatility, money laundering, financing of terrorism and potential non-compliance with foreign exchange regulations.

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Share on linkedin
LinkedIn

Follow Us

Most Popular

Get The Latest Updates

Subscribe To Our Weekly Newsletter

No spam, notifications only about new products, updates.
On Key

Related Posts

Ethereum Price is about to crash further if THIS happens!

The crypto market is still consolidating after the crypto crash. In the last couple of days, many day traders took advantage of this consolidation and bought cryptos in their respective support areas. For Ethereum, traders worry that prices risk crashing and slipping below the current support area. Will Ethereum crash down or will Ethereum rebound

Monero Is Preparing for a Bull Run; Should You Buy XMR Now?

Monero is a decentralized cryptocurrency that mainly focuses on anonymity during transactions. It has three parts- Ring Signature, RingCT, and Stealth address. The Ring Signature hides the sender, RingCT hides the amount, and the Stealth address makes the receiver anonymous. XMR is the native coin of this network, which is used during the transaction. First,

SEC Files an Extension: How Will It Impact the Price of XRP?

Ripple is a decentralized digital payment platform that runs on RippleNet. Most large cryptocurrencies face issues regarding scalability and slow transactions. Ripple comes with the solution by providing a real-time gross settlement system. It enables transactions to any digital coins. It was created to make the decentralized financial transaction scalable and affordable.  After the US

Illuvium Expands Its Chainlink Integration With Price Feeds

Illuvium recently announced an expansion to its Chainlink Integration by including Price Feeds. With the integration, Illuvium will help users accurately price digital lands whether they are transacting in ETH or sILV2. The land is an integral component of Illuvium Zero. Customers who possess land can create valuable tokens and fuel, and the ERC 20