In the recent turn up of events in crypto trading in Argentina, all the cryptocurrency and assets related services provided by Banks have been banned with immediate effect. According to a report, the Central Bank of Argentina (BCRA) has further decided that digital currencies having blockchain registration will also not be unauthorized for use.
The decision of the government follows just after few days when 2 big names in Banking in Argentina allowed their customers to buy and sell cryptocurrency via their own platform.
A few days back, there were reports that Argentina Capital Buenos Aires might allow its citizens to clear their taxes through cryptocurrencies.
The Banks were offering trade in 4 most popular names in the world of digital currency – Bitcoin, Ethereum, USD coin and XRP.
The move comes in as the Central Banks in Argentina does not support cryptocurrency. It is considered to be highly volatile. Moreover, it may also pave the way for illegal activities like money laundering and cyber attacks. Further more, unlike other forms of currency, cryptocurrency is driven more by the sentiments of the market and can lead investors towards huge losses.
The big names of Crypto exchanges like Binance, Coinbase and PancakeSwap do not have official licenses to operate in Argentina.
Earlier in the month of March, IMF (International Monetary Fund) had also asked the government of Argentina to discourage the use of digital currency in the country. In this regard, Argentina also signed an agreement with the IMF for $45 million to re-form its debt repayment plan and not rely on cryptocurrency.
It has been observed that countries having weak economy are trying to make up for their value with the help of digital currency. In Argentina also, cryptocurrency is being used as a way to counter inflation.
