Argentina’s central bank halts cryptocurrencies from payment apps

Run-away inflation is driving crypto adoption in Argentina. In April, the price of Bitcoin (BTC) reached a record high in the Argentine peso (ARS), with the BTC currency exchange rate crossing over 6.59 million ARS– up more than 100% year-to-date. In March, inflation in the country skyrocketed by 104.3% on an annual basis, following a 102.5% dive in the previous month, information from the nationwide statistics office show.Bitcoins appeal in the country also coincides with the ongoing devaluation of the Argentine peso, Cointelegraph reported. The currency has actually fallen nearly 50% against the United States dollar in the past year. ARS/USD chart. Source: Google FinanceAmid the ongoing financial crisis, even some Argentinian cities are looking for a safe house in cryptocurrencies. Last December, the Argentine province of San Luis enabled the issuance of its own stablecoin pegged to the U.S dollar, readily available to all locals and 100% collateralized with liquid monetary properties. Chainalysis found that over 30% of customers in Argentina use stablecoins for everyday purchases, probably for little retail transactions under $1,000.

Cryptocurrencies are not managed in Argentina, which means all tokens and coins are subject to the decision.Its uncertain how the procedure will affect the regional crypto industry. Argentinas fintech chamber urged the government to reassess the choice, declaring that “it limits access to a technology that offers numerous advantages and opportunities for our society.” 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.

Cryptocurrencies are not managed in Argentina, which means all tokens and coins are subject to the decision.Its unclear how the procedure will affect the local crypto market. Argentinas fintech chamber advised the government to reassess the decision, declaring that “it limits access to an innovation that provides multiple advantages and opportunities for our society.” 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.