The central bank of Argentina has issued a new rule that prohibits payment providers from enabling crypto transactions on their platforms.
Argentina’s Payment Apps Can No Longer Offer Crypto
The central bank of Argentina has issued a new rule that prohibits payment providers from enabling crypto transactions on their platforms. The bank claims that this measure is aimed at reducing the exposure of the country's payment system to digital assets, which are not regulated by any national authority. The rule applies to both payment fintechs and financial institutions that offer payment accounts.
This decision could have a significant impact on the local crypto industry, which has been growing rapidly amid the economic crisis and hyperinflation in Argentina. The price of Bitcoin in Argentine pesos reached an all-time high in April, surging more than 100% since the beginning of the year. The Argentine peso, on the other hand, has lost almost half of its value against the US dollar in the past year.
Some regions in Argentina have already adopted cryptocurrencies as a way to hedge against inflation and currency devaluation. For example, the province of San Luis launched its own stablecoin pegged to the US dollar in December, which is available to all residents and backed by liquid financial assets. Additionally, some 30% of consumers in the country are said to use stablecoins for day-to-day transactions.
