The Central Bank of Argentina has taken steps to ban private banks from providing cryptocurrency services to domestic customers. This action takes place after the two banks have begun offering cryptocurrency purchase services from the app. This measure is said to be aimed at reducing the risks associated with crypto assets.
Central Bank of Argentina closes bank cryptocurrency offer
The Central Bank of Argentina is strengthening its forgiveness regarding the link between crypto assets and private banks. Institutions issue documents dealing with the purchase of cryptocurrencies and the provision of trading services through these institutions and prohibit the promotion of such transactions for Argentine citizens.
The Document explanation:
Financial institutions use digital assets whose yields are determined based on crypto assets and registered variations, are not regulated by national authorities, and are approved by central banks, or clients perform operations. It cannot be promoted. Argentina (BCRA).
In addition, financial institutions claim that the purpose behind this measure is to mitigate the risks faced by users and financial institutions when using these assets as a means of investment. This announcement will be made after two private banks in the country. Banco Galicia When Blue bankAnnounced that it will introduce cryptocurrencies as part of its provision of financial services to its customers.
but, according to There may be other motives behind this ban by the central bank, according to some local media reports. Due to the fact that banks dealing with crypto assets are reportedly unregulated and therefore not illegal, the organization has already personally consulted with the central bank and gave a nod of approval.
According to financial resources, cryptocurrency operations can also cause a demand for dollars that increases the breach between the official dollar price and the black market dollar called the “blue” dollar. Argentina has currency controls, which may have influenced the decision to suspend these businesses before they became more important to the economy as a whole.
The difference between the official dollar and the blue dollar has not changed, and the latter is about 80% higher than the former, so recent trading volumes did not affect this exchange rate.
Another possible reason for this measure is related to the transaction Argentina has entered into with the International Monetary Fund to pay its debt. Requirements It would be contrary to say that the country would stop using cryptocurrencies and allow private banks to offer these services.
What do you think of the resolution issued by the Central Bank of Argentina that prohibits private banks from offering cryptocurrencies to their customers? Please let us know in the comments section below.
Image credit: Shutterstock, AIXabay, Wikicommons
Disclaimer: This article is for informational purposes only. This is not a direct offer or solicitation for a purchase or sale, or a product, service, or company recommendation or approval. Bitcoin.com We do not provide investment, tax, legal, or accounting advice. Both the company and the author, directly or indirectly, with respect to any damage or loss caused or allegedly caused by or in connection with the use or trust of the content, goods or services described in this article. We are not responsible.