Bitcoin banned: Argentina no longer allows cryptocurrency payments

Bitcoin banned: Argentina no longer allows cryptocurrency payments

Peso, yes! Crypto, no! Galloping inflation in Argentina is pushing more and more citizens to the cryptocurrency kings. In addition, the price of bitcoin in pesos has reached a new level historical high last month. If the population supports it, the authorities are more timid. Explanations.

Crypto payment ban in Argentina

On May 4, Argentina’s central bank released a statement aimed at curbing the use of cryptocurrencies. Actually, online payment service providers they will no longer be able to offer cryptocurrencies as a medium of exchange. Gone is ” Pay in Bitcoin », at Mercado Libre! Additionally, the ruling prohibits trading platforms from trading in crypto assets.

“Payment service providers will not be able to conduct or facilitate crypto-asset transactions from their apps or web platforms. Those interested must perform the operations themselves. »

The reason given? This measure aims to mitigate risks that transactions with these assets may cause users to incur. While the intention seems laudable, one wonders what guarantee of security is offered by a national currency whose value is inexorably collapsing. But let’s close this biting parenthesis quickly.

Besides, the honorable institution wanted to put service providers on an equal footing financial institution. As a reminder, in May 2022 BCRA has put the kibosh on the country’s two largest banks. They wanted to propose cryptocurrency trading to their customers. Cryptocurrencies were considered too volatile and risked endangering Argentina’s financial system (but not inflation).

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And yet, cryptocurrencies are moving forward

Like what happens in the United States, they sometimes exist contradictions between the central powerrestrictive a local measures more favorable to the official use of crypto-assets. Last year, for example, province of Mendoza authorized paying taxes in stablecoins. This decision demonstrates the interest of certain regulators in cryptocurrencies in Argentina.

However, Argentines are increasingly turning to cryptocurrencies. According to the Chainalysis report, in 2022 the country ranked 13th worldwide in terms of adoption.

This momentum may still carry ultraliberal candidate Javier Milei currently at the top of electoral intentions for the next presidential election. His speech against the central bank is attractive. It seems that his partnership with the defunct CoinX platform did not prevent his progress in the polls.

Regulation of the cryptocurrency sector is necessary to provide a framework to help businesses grow while protecting the public from abuse. In this regard, the state of Montana has recently guaranteed by law protection of cryptocurrency miners. Will it restore sanity at the federal level, determined to complicate life for players in the crypto sector?

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