The ambitions of the private bank Banco Galicia in Argentina seem to fall through! While it recently announced its first “crypto offer”, which was to allow its customers to buy and/or sell certain cryptos (including BTC, ETH, XPR and USDC), the central bank of Argentina announced that it would prohibit the country’s financial institutions from offering crypto offers to their customers. We can say that the reaction of the central bank, monetary authority of the country, was quick.
Yes, this ban seems to be a response to the decisions of the two Argentine credit institutions – including Banco Galicia – to offer the purchase and / or sale of cryptos (BTC, ETH etc.) through a “crypto offer” to their customers. This prohibition covers not only cryptos in general (e.g. Bitcoin, Ethereum) but also “assets whose returns are determined by the fluctuations of crypto currencies”.
It is clear that Banco Galicia is thwarted in its plans, even though the institution seemed to be well advanced in its project. Indeed, Banco Galicia had already partnered with Lirium, a crypto and digital wallet service provider, to implement this new option.
A surprising ban on crypto offers
Argentina, however, seemed to take a favorable stance on the development of cryptos on its territory. So much so that one can sometimes hear about “the future crypto eldorado”. If the adoption of cryptos in Argentina has been rapid, it is because the country is experiencing repeated currency crises. The crypto solution was therefore ideal for a country where the inflation recorded in 2021 exceeded 50.9%.
So how to understand this decision of the central bank of Argentina?
It explains itself that the ban aims to “mitigate the risks associated with crypto transactions”. Unsurprisingly, the bank bases this on the high volatility of crypto prices and the potential cases of fraud that cryptos make possible. Risks that concern, according to her, individuals but also the entire Argentine financial sector.
Another surprising point is that the Central Bank of Argentina prohibits trading while it is indeed she who had given an authorization to Banco Galicia and Brubank. In any case, this decision of the Argentinean central bank is likely to make some noise. Perhaps more changes will be announced in the days to come?
Two days after the intervention of the Argentinean Central Bank, Binance becomes the main sponsor of the Argentinean national soccer team.
Binance becomes main sponsor of the Argentine Football Association (AFA)
Binance has announced a five-year partnership agreement with the Argentine Football Association (AFA). Together, the two parties will work collaboratively to offer new services and provide better experiences for fans. At the same time, a Fantoken will be launched, while the AFA, in partnership with Socios.com, had already launched its first Fantoken.
“With this agreement, we hope to support Argentine soccer at all levels and introduce Binance, the world of crypto-currencies and blockchain, to soccer fans in the country and around the world.”Maximiliano Hinz, Director of Binance Latam
In parallel, the launch of a Fantoken is planned, while the AFA, associated with Socios.com, had already launched its first Fantoken. A decision strongly criticized by Socios.com which has requested the AFA following this announcement.