Argentine Central Bank issues crypto banking ban order: Report

To minimise the risks associated with cryptocurrencies, the Argentina’s Central Bank banned banking services for crypto companies. 

Argentina is a country in the southern half of South America. This country doesn’t regulate crypto companies but Argentina’s central bank warned several times about the risks of digital assets, while the financial markets regulator CNV is backing a bill to create a registry of providers offering virtual assets. 

In a new announcement, the Argentine Central Bank issued an order to all the national banks to stop providing banking services to all the crypto companies or crypto-related services.

The central bank stated that the latest decision has been taken to keep the majority of the risks away from cryptocurrency exposure in the country. 

Inflation in Argentina & Argentine peso

Over the last decade, Argentina’s economy saw huge inflation and people lost their faith in the national sovereign currency Peso. 

After the COVID-19 pandemic, the Argentine peso’s value plunged by more than 200% and current analysis is showing that the situation will be very bad in 2024. 

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Source: Statista

To fight against inflation, the majority of the citizens are moving toward investment in US dollar-pegged stablecoins, Gold, Siver, & Bitcoin.

The current trade price of Bitcoin in the Argentine peso is currently at an all-time high. 

Over the last 2 years, three countries officially adopted Bitcoin as a legal tender. Also, many Bitcoin proponents suggested all the financially struggling countries adopt Bitcoin to fight against inflation.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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