May 8, 2023

Argentinian Central Bank Suspends Crypto Transactions from Payment Apps

Central Bank of Argentina

Central Bank of Argentina

The Argentian Central Bank decided to limit payment with cryptocurrencies in a bid to reduce Argentina’s payment-system exposure to digital assets, especially crypto assets, which are not regulated by the competent national authority and authorized by the central bank.

The central bank suspended the payment providers from conducting crypto transactions through their applications, a statement from the monetary authority was quoted by Cointelegraph as saying. Payment fintech and financial institutions in the country are also expected to adhere to this decision.

It is worth noting that cryptocurrencies are not regulated in Argentina, which means all coins and tokens are subject to the decision.

According to the statement, the bank’s move aims to mitigate the risks that operations with these assets could generate for users of financial services and the national payment system.

Meanwhile, the Argentinian fintech chamber called on the government to reconsider the decision, saying such a decision deprives multiple benefits and opportunities gained from the crypto technology.

Argentina witnesses high rates of crypto adaption because of hyperinflation. The BTC-to-ARS exchange rate crossed over 6.36 million ARS because of the ongoing ARS devaluation, according to aggregated price data tracked by Google Finance.

In May 2021, the Argentinian Central Bank and the National Securities Commission (CNV) warned about possible implications and risks that crypto assets may entail and recommended a prudent attitude to mitigate a possible source of vulnerability for users and investors.

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