According to the financial authority, the prohibition aims to lessen Argentina’s payment system’s exposure to virtual currencies.
The central bank of Argentina prohibited crypto transactions on 4th May to lessen the exposure of the nation’s payment system to digital properties, according to the bank. Payment service providers are not permitted to provide or enable crypto transactions through their apps, according to a statement from the monetary authority. The change places financial institutions and payment fintech within the same set of regulations in the nation.
Amid Argentina Becoming The Leading Country In Cryptocurrency, The Nation Blocks Crypto From Payment Apps
The central bank of the Argentine Republic stated that the service providers regarding the payment that provides payment accounts, might or might not perform tasks with digital properties, including cryptocurrencies, which aren’t controlled by the able national agency and permitted by the Bank of Argentina. Since cryptocurrencies are unregulated in Argentina, the judgment applies to all tokens and coins. It is unknown how the regulation would impact the regional cryptocurrency market. Payment service providers reportedly declined to say anything about the choice, according to local media. The government’s decision, according to Argentina’s Chamber of Fintech, limited access to the kind of technology that provides several opportunities and benefits for their society.
It is leading the world in the adoption of cryptocurrencies. With the bitcoin exchange rate surpassing over 6.59M ARS around April, the expense of Bitcoin symbols was down $29,093 and achieved an all-time high of its currency in the ARS. According to figures from the statistics office of the nation, the country’s inflation increased by 105.3% annually in March, following a 103.5% increase the month before. According to authentic reports, the increasing weakening of the peso in Argentina and the rise in popularity of Bitcoin in the nation are related. In the last year, the value of the currency relative to the US dollar has decreased by about 50%.