Two of the largest banks in Argentina now offer cryptocurrency trading services.
Argentina banks allow cryptocurrency purchases
Banco Galicia and Brubank, two of Argentina’s largest private banks, have announced that they will allow customers to purchase cryptocurrency. Bloomberg reported this on May 2. Around 60% of respondents in the survey asked for greater access to digital assets, and this probably had a positive impact on the decisions of both banks to allow trading of digital assets.
We have seen that Banco Galicia allows the purchase of Bitcoin (BTC), ETH (ethers), USDC and XRP (xrp).
Argentina has the sixth highest rate of cryptocurrency adoption in the world. By 2021, it is estimated that 21% of Argentines will use or own cryptocurrencies.
Enabling Argentines to purchase bitcoin and other cryptocurrencies through their banks could ease the country’s soaring inflation rates. Inflation in Argentina was as high as 55% in April, according to the latest figures from the economic data tracking tool Trading Economics. Cryptocurrency proponents argue that bitcoin’s scarcity and decentralization make it an ideal inflation hedge.
Bitcoin and inflation
In Argentina, the city of Sorradino bought excavators to dig bitcoins. The authorities hope to use mining to fight inflation. Mining income is estimated at several hundred dollars per month.
Due to the high adoption rate, the mayor of Argentina’s capital, Buenos Aires, announced last month that the city is now accepting cryptocurrencies as a form of payment for public services. The city is also preparing to launch a blockchain-based digital identification platform (DID) for residents.
Argentinean politicians are not the only ones in South America to make great progress with cryptocurrency adoption. Brazil’s Senate finally approved the Bitcoin Law on April 26. This will help create a much-needed legal framework for the market. Now that the draft has passed the Senate, it will be sent to President Bolsinaro, who will either sign it or veto it.