TLDR
- Argentina’s Central Bank is considering lifting its ban on banks offering cryptocurrency services to customers.
- The move is driven by the rising demand for digital assets in response to Argentina’s ongoing inflation and currency instability.
- Allowing banks to facilitate crypto trading could bring informal crypto activity into the regulated financial system.
- The proposed change would help track and tax cryptocurrency transactions more effectively.
- Argentina’s shift may prompt a significant competitive change, with banks potentially dominating the crypto market.
Argentina is considering a major shift in its financial regulations. The Central Bank (BCRA) may soon lift its ban on traditional banks offering cryptocurrency trading and custody services. This change comes as a response to growing demand for digital assets, driven by Argentina’s ongoing inflation and currency instability.
Integrating Crypto as an Anti-Inflation Hedge
For years, many Argentines have used cryptocurrencies like Bitcoin and stablecoins as a hedge against their country’s inflation. These digital assets have provided a way for citizens to preserve wealth and bypass the country’s currency controls. Argentina’s economic instability has pushed people to seek safer options for saving, making crypto a popular choice.
The BCRA has long prohibited banks from engaging in cryptocurrency transactions. However, the government, under President Javier Milei, now seems open to changing this stance. The administration is considering a regulatory overhaul that could allow banks to offer crypto services under new, stricter guidelines.
If this happens, banks could begin offering crypto trading and custody services to their customers. This would bring a large portion of Argentina’s crypto activity into the formal financial system. The move could help stabilize domestic capital flows, as well as track and tax this growing sector more effectively.
Argentina Weighs Major Shift in Crypto Regulations
The potential entry of banks into the crypto space could reshape Argentina’s financial landscape. At present, crypto exchanges and Virtual Asset Service Providers (VASPs) dominate the market. Major banks, with their large customer bases, could immediately become leading players in the space.
This shift would likely reduce transaction costs and improve service quality. However, the transition is not without challenges. The BCRA would need to establish new regulations to ensure banks manage the risks associated with volatile assets like Bitcoin. The central bank must balance financial innovation with systemic stability, protecting the broader banking system from undue risks.
For now, banks must still operate within the BCRA’s existing framework, which prohibits crypto transactions. However, experts believe that lifting the ban could increase the pace of crypto adoption across Argentina. According to a report from Chainalysis, Argentina already saw $93.9 billion in crypto transactions between 2022 and 2025, the second-highest total in Latin America.
As the government weighs this regulatory shift, local experts predict the changes could drive mass adoption of cryptocurrencies. In Brazil, a similar move to regulate crypto providers has already taken place, highlighting the growing trend across Latin America. Argentina’s proposed policy change could solidify its position as one of the region’s leading crypto hubs.
In the coming months, the government will likely announce further steps regarding the regulation of digital assets. However, for now, Argentina’s crypto industry remains largely in the hands of independent providers. The potential role of traditional banks in crypto trading remains a major point of discussion within the country.
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