Argentinian payment apps can no longer offer crypto

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Argentinian payment apps can no longer offer crypto

Argentinian payment apps can no longer offer crypto

Argentina’s central bank has released a new rule that prohibits payment providers from enabling crypto transactions on their platforms. The bank says the move aims to reduce the exposure of the country’s payment system to digital assets, which are not regulated by any national authority. The rule applies to both payment fintechs and financial institutions that offer payment accounts.

The move could have a significant impact on the local crypto industry, which has grown rapidly amid Argentina’s economic crisis and hyperinflation. The price of Bitcoin in Argentine pesos hit an all-time high in April, jumping more than 100% year-to-date. The Argentine peso, on the other hand, has lost nearly half of its value against the US dollar over the past year.

Some regions of Argentina have already embraced cryptocurrencies as a way to hedge against inflation and currency devaluation. For example, the province of San Luis launched its own US dollar-pegged stablecoin in December, which is accessible to all residents and backed by liquid financial assets. Moreover, around 30% of consumers in the country are said to use stablecoins for day-to-day transactions.

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