Skyrocketing

Momentum

<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">
 Neither the author, Ruholamin Haqshanas, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noreferrer noopener" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
</div> 
<p class="has-drop-cap">Argentina’s Central Bank has&nbsp;<a href="https://bcra.gob.ar/Noticias/proveedores-servicio-pago-no-pueden-operar-criptoactivos.asp" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">prohibited</a>&nbsp;financial payment service providers from offering cryptocurrency transactions, citing a need to reduce the exposure of digital assets to the payments system. The move comes as Argentinians <a href="https://tokenist.com/stablecoins-become-safe-haven-assets-in-inflation-struck-argentina-and-turkey/" rel="dofollow" class="deco-link">increasingly resort to digital currencies</a> to protect wealth amid soaring inflation.</p> 
<h3 id="argentine-bans-crypto-transactions-to-citing-risks-to-financial-systems">Argentine Bans Crypto Transactions to Citing Risks to Financial Systems</h3> 
<p>In a recent statement, the Central Bank of the Argentine Republic (BCRA) said that payment providers could not offer cryptocurrency services through their platforms or applications. The central bank said that the decision was to “mitigate risks.”</p> 
<blockquote class="wp-block-quote"> 
 <p>“Payment service providers that offer payment accounts (PSPCP) will not be able to carry out or provide their customers with operations with digital assets, including cryptoassets, that are not regulated by the competent national authority and authorised by the Central Bank of the Argentine Republic (BCRA).”</p> 
</blockquote> 
<p>The move reduces the ease of transactions in the crypto space for Argentinians, removing the opportunities the technology offers the public. For one, the new rule bans major platforms, including Mercado Libre, Latin America’s answer to Amazon, from accepting Bitcoin and crypto payments.&nbsp;</p> 
<p>Meanwhile, some research groups inside the country have already opposed the plan. The fintech chamber of Argentina has urged the national authority to reverse the decision, indicating that it places a significant limit on a technology that offers numerous benefits and opportunities for society.&nbsp;</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="500" data-dnt="true">
   <p lang="es" dir="ltr"><img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f4cd.png" alt="📍" class="wp-smiley" style="height: 1em; max-height: 1em;">Invitamos al BCRA a revisar esta medida y a trabajar en conjunto con la Cámara Argentina Fintech y otros actores relevantes del sistema para establecer un marco que permita el desarrollo responsable y sostenible de la industria cripto en Argentina.</p>— Cámara Argentina Fintech (@CamaraFintechAr) <a href="https://twitter.com/CamaraFintechAr/status/1654505641006837765?ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">May 5, 2023</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<div class="cta-referral"> 
 <img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async"> 
 <div class="cta-referral__text"> 
  <p>Join our&nbsp;<a href="https://t.me/thetokenist" target="_blank" rel="noreferrer noopener nofollow">Telegram group</a>&nbsp;and never miss a breaking digital asset story.</p> 
 </div> 
</div> 
<h3 id="crypto-adoption-in-argentina-finds-momentum">Crypto Adoption in Argentina Finds Momentum</h3> 
<p>The recent crypto clampdown by Argentina’s government comes as the country has been one of the fastest-growing cryptocurrency markets. As&nbsp;<a href="https://tokenist.com/stablecoins-become-safe-haven-assets-in-inflation-struck-argentina-and-turkey/" rel="dofollow" class="deco-link">reported</a>, Argentina has one of the highest ownership rates of digital assets at 23.5%, only second to Turkey at 27.1%.&nbsp;</p> 
<p>The growing crypto adoption is primarily attributed to the&nbsp;<a href="https://tokenist.com/investing/how-does-inflation-affect-stocks/" rel="dofollow" class="deco-link">country’s soaring inflation</a>. Argentina’s inflation rate has&nbsp;<a href="https://www.bbc.com/news/world-latin-america-64960385" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">soared past</a>&nbsp;100% this year. According to the country’s statistics agency, inflation hit 102.5% in February, suggesting the price of many consumer goods has more than doubled since 2022.</p> 
<p>The shift toward digital tokens comes as residents of the country might have difficulty getting their hands on physical dollars or other currencies amid tight capital controls.&nbsp;</p> 
<p>Meanwhile, Argentina’s government has historically taken a dynamic stance on cryptocurrency. While it warned users of the risk of digital assets in 2014, the government acknowledged the benefits of blockchain and cryptocurrencies in driving the economy in 2017.&nbsp;</p> 
<p>The country’s central bank also&nbsp;<a href="https://thelawreviews.co.uk/title/the-virtual-currency-regulation-review/argentina" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">set regulations</a>&nbsp;for cryptocurrency exchanges in 2019, requiring them to comply with anti-money laundering and counter-terrorism financing regulations. In the same year, the country&nbsp;<a href="https://golden.com/wiki/Argentina_Cryptocurrency_regulation-AMPNX5X" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">banned</a>&nbsp;the purchase of cryptocurrency using credit cards as a partial measure to stabilize the Argentine peso.</p> 
<h3 id="is-the-new-crypto-ban-connected-with-the-imf">Is the New Crypto Ban Connected with the IMF?</h3> 
<p>Argentina’s president Alberto Fernandez is <a href="https://www.bloomberglinea.com/2022/03/25/criptomonedas-bajo-la-lupa-del-fmi-asi-avanzaria-argentina-en-su-regulacion/" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">negotiating</a>&nbsp;a new payment agreement with the International Monetary Fund (IMF) to help ease the country’s economic crisis. However, the agreement reportedly includes new demands for more restrictive crypto policies.</p> 
<p>According to a&nbsp;<a href="https://www.forbes.com/sites/digital-assets/2023/04/26/crypto-usage-rises-across-argentina-despite-the-anti-crypto-imf-deal/?sh=56706b4f6ece" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">report</a>&nbsp;by Forbes, the IMF has been pushing for tighter regulations on cryptocurrencies in Argentina, which has raised concerns that the recent crypto ban in the country could be partly connected to the negotiations with the IMF.&nbsp;</p> 
<p>The Argentinian government has struggled to negotiate with the IMF for over a year to ease the terms and let Argentina’s ailing economy recover. In early April, the IMF&nbsp;<a href="https://www.reuters.com/markets/imf-unlocks-funds-argentina-boosting-reserves-25-bln-data-source-2023-03-31/" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">cleared</a>&nbsp;the payment of $5.4 billion more to Argentina, which came on top of the $44 billion debt the country took from the IMF in 2018.&nbsp;</p> 
<div class="cta-sub js__cta-sub"> 
 <div class="cta-sub__start" data-step="1"> 
  <div class="cta-sub__title">
   <strong>Finance is changing.</strong>
  </div> 
  <div class="cta-sub__subtitle">
   Learn how, with Five Minute Finance.
  </div> 
  <div class="cta-sub__excerpt">
   A weekly newsletter that covers the big trends in FinTech and Decentralized Finance.
  </div> <button type="button" class="btn">Try it out (for free)</button> 
 </div> 
 <div class="cta-sub__form" data-step="2" style="display: none;"> 
  <script type="text/javascript" src="https://app.getresponse.com/view_webform_v2.js?u=QcLhh&amp;webforms_id=hpcwd"></script> 
 </div> 
 <div class="cta-sub__result" data-step="3" style="display: none;"> 
  <div class="cta-sub__title">
   Awesome
  </div> 
  <div class="cta-sub__caption">
   You’ve subscribed.
  </div> 
  <div class="cta-sub__greeting">
   You’re well on your way to being in the know.
  </div> 
 </div> 
</div> 
<p><strong><em>Do you think Argentina’s approach to crypto could backfire? Let us know in the comments below.&nbsp;</em></strong></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/argentinas-central-bank-moves-against-crypto-amid-skyrocketing-inflation/">Argentina’s Central Bank Moves Against Crypto Amid Skyrocketing Inflation</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Argentina’s Central Bank Moves Against Crypto Amid Skyrocketing Inflation

목차

TokenInsight

2023년 5월 8일에 게재된 다른 기사

Another crypto winter? Why is the BTC price down today?

Introducing the Ultimate 20-Day QTUM NFT Campaign on Oases NFT Marketplace: Win Your Share of 10,...

Bank of Canada Seeks Public Consultation on CBDC Design

CashApp’s Bitcoin Sales Up 25% Since Last Quarter

CZ Gives Comments on Recent BTC Outflow From Binance

Callisto Network Insider #14 - April 2023: CLO Turns 5, Expanding Reach, and Exciting SOY Updates!

무료 뉴스레터에 가입하여 매일 최신 암호화폐 소식을 받아보세요!