Argentina’s Central Bank Eyes Reversal: 2022 Crypto Trading Ban Under Review for Banks
Argentina's financial landscape might be on the cusp of a seismic shift. The nation's central bank is reportedly weighing a move that could dismantle a key regulatory barrier erected in 2022.
The Ban in Question
Back in 2022, the monetary authority slammed the door, prohibiting regulated financial institutions from offering cryptocurrency trading or custody services. The move was a stark warning shot across the bow of digital asset integration.
Why the Re-think?
Global momentum is one driver—watchdogs elsewhere are crafting frameworks, not just building walls. Domestically, the relentless public demand for crypto as a hedge against peso volatility and inflation creates immense pressure. Letting banks back in could channel that demand into a more supervised environment, a classic regulatory 'if you can't beat them, regulate them' play—though cynics might note it also lets traditional finance finally get a piece of the action they once scorned.
What's Actually Changing?
This is a consideration, not a decree. The central bank is 'evaluating' and 'reviewing' the 2022 restrictions. No timeline exists, and the final decision could uphold, modify, or scrap the ban entirely. The process itself, however, signals a notable softening in official stance.
The Stakes for Argentina
Reversal would be a watershed. It would grant banks a direct gateway into the crypto economy, potentially boosting liquidity and legitimizing assets for millions. It reshapes the competitive field, pitting traditional banks against native crypto exchanges. For everyday Argentines, it could mean buying Bitcoin becomes as straightforward as a checking account transfer—assuming the banks don't bury the service in fees worthy of a bull market itself.
The move underscores a global truth: regulators aren't just playing defense anymore. They're learning to run offensive plays with the digital asset rulebook. Argentina's next call will reveal whether it's ready to get in the game or stay on the sidelines.
Argentina could revise the IMF restructuring plan to avoid Bitcoin
In 2022, the IMF approved a debt restructuring deal that included a commitment to “discourage the use of cryptocurrencies with a view to preventing money laundering, informality and disintermediation,” according to correspondence sent to IMF Managing Director Kristalina Georgieva.
The regulatory approach limited formal access to digital assets, leaving millions of Argentines reliant on informal channels for crypto trading. Despite the ban, some private banks like Banco Galicia, Argentina’s largest private bank, added crypto trading services.
If the rule change is successful, allowing regulated banks to facilitate crypto transactions could give citizens a safer, more structured way to invest, and the central bank will have greater oversight of market activity.
Argentines believe digital assets Bitcoin and stablecoins are the answer to high inflation rates and strict foreign currency controls. Argentina’s inflation rate came down slightly in October, falling to 31.3% from the previous month’s 31.8% level.
During the central bank decision to restrict dollar resales for 90 days prior to the October 26 elections, local trading platform Ripio reported a 40% weekly surge in stablecoin-to-peso transactions.
“Stablecoins are undoubtedly a vehicle to get cheaper dollars,” said Julián Colombo, country manager at Bitso. He also mentioned regulatory gaps that have allowed the informal “rulo” trading system to thrive, where stablecoins are exchanged for pesos at favorable rates.
Nicole Connor, leader of Argentina’s Women in Crypto organization, said many citizens now avoid peso-based savings altogether. “Inflation and political uncertainty make us more conservative, so I don’t have any savings or investments in pesos. I keep my savings in crypto and stablecoins and try to generate returns with them,” she added.
Crypto to ease economic weight on Argentine banks
According to Bloomberg, private banks in Argentina reported losses during the third quarter against the backdrop of the highest loan delinquencies seen in the last 15 years.
“A very tight monetary policy characterized by unsustainably high real interest rates and historic reserve requirements ahead of the elections had a severe impact on economic activity and particularly the entire banking sector,” said Julio Patricio Supervielle, CEO of Banco Supervielle SA.
Persistent inflation has eroded purchasing power for average Argentines, including public employees, informal workers, and pensioners, whose incomes are well below early 2023 levels. If the BCRA decides to greenlight crypto trading for traditional banks, there could be more liquidity in US dollars for the country to bargain with, not to mention more ways for President Javier Milei to fight inflation.
“The dollar occupies a very strong place in Argentine society and in everyday life because it has given us a refuge from the national currency,” one stockbroker told Bloomberg.
The October midterm election results highly favored President Javier Milei’s coalition and provided a strong market signal. Yet, the government still has to secure more dollars to rebuild foreign currency reserves and keep the peso within a trading band through a gradual depreciation of about 1% per month until the 2027 presidential elections.
London-based ProMeritum, a credit and fixed-income fund, posted a 1.76% gain in October after purchasing Argentine assets following a September sell-off. “We did not have any Argentina exposure before the September elections in the province of Buenos Aires, so avoided the negative impact,” said managing partner Pavel Mamai.
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