argentina

Argentina’s central bank BCRA is weighing a major policy shift that could reshape the country’s crypto landscape. According to officials familiar with the discussion, the bank is evaluating a plan to repeal the 2022 ban that prevented financial institutions from offering crypto trading and custody services.
If approved, banks would once again be able to facilitate the buying and selling of Bitcoin, stablecoins, and other digital assets — this time under a regulated framework.
The original ban was closely tied to pressure from the International Monetary Fund (IMF). After Argentina received a $44 billion bailout, the IMF urged the government to keep cryptocurrencies out of the formal banking sector. At the time, the BCRA argued that the measure was necessary to maintain financial stability, prevent money laundering, and limit unregulated transactions.

IMF conditions may be revised – Bitcoin could reenter the formal system
In 2022, the IMF approved a restructuring agreement in which Argentina committed to “discouraging the use of cryptocurrencies in order to prevent money laundering, informality, and disintermediation.” This effectively blocked formal access to digital assets.
The result was that millions of Argentines turned to informal channels to buy and trade crypto, as domestic demand continued to surge. Some private banks — including Banco Galicia, the country’s largest privately owned bank — later introduced limited crypto services despite the regulatory pressure.
If the BCRA ultimately lifts the ban, digital assets could return to the regulated banking environment for the first time in years. This change would:
Increase customer protectionGive the central bank stronger oversight of crypto activityProvide citizens with a safer and more structured way to invest
Crypto as a hedge against inflation: Argentines turn to Bitcoin and stablecoins
In a country plagued by some of the highest inflation rates in the world, cryptocurrencies are not just speculative assets — they are, for many, a financial lifeline.
Argentina’s inflation rate eased slightly in October to 31.3%, but persistent economic uncertainty continues to push people away from the peso. Ahead of the October elections, the BCRA restricted access to U.S. dollars for 90 days, triggering a sharp surge in crypto activity. The exchange Ripio reported a 40% weekly increase in stablecoin-to-peso transactions.
Bitso noted that stablecoins have become “a vehicle to obtain cheaper dollars,” while regulatory loopholes have fueled the informal rulo trading system, where stablecoins are exchanged for pesos at more favorable rates than banks offer.
Nicole Connor of Women in Crypto added that many Argentines have abandoned peso-based savings entirely:
“Inflation and political uncertainty make us more conservative. I don’t keep any savings in pesos — I hold everything in crypto and stablecoins and try to generate returns from them.”

Crypto adoption could relieve pressure on struggling banks
Private banks in Argentina reported third-quarter losses, impacted by the highest delinquency rates seen in fifteen years. According to Julio Patricio Supervielle, CEO of Banco Supervielle:
“Extremely tight monetary policy, unsustainably high real interest rates, and historic reserve requirements ahead of the elections severely affected economic activity and the banking sector.”
Years of persistent inflation have eroded purchasing power across the population — including public sector workers, informal workers, and pensioners.
If the BCRA allows banks to offer crypto services, the change could:
Strengthen dollar liquidity within the financial systemProvide President Javier Milei with more tools to combat inflationHelp stabilize banks through diversification of assets
A local stockbroker told Bloomberg that the U.S. dollar still serves as a fundamental psychological anchor in society:
“The dollar holds a very strong place in Argentine daily life because it has long offered protection from the national currency.”

Markets respond: foreign investors cautiously return to Argentine assets
The October elections delivered a strong victory for Milei’s coalition, boosting investor sentiment. However, Argentina still needs to rebuild its foreign currency reserves and maintain its managed exchange rate policy, which foresees a 1% monthly peso depreciation through 2027.
London-based fund ProMeritum posted a 1.76% gain in October after purchasing Argentine assets following a September selloff.

“We had no exposure to Argentina before the September elections in Buenos Aires province, so we avoided the negative impact,” said managing partner Pavel Mamai.

Conclusion
Argentina is once again on the brink of a major monetary experiment. Should the central bank abandon the IMF-imposed policy and allow banks to participate in the crypto ecosystem, citizens would gain safer access to digital assets — and the government would gain a new tool to navigate an economy strained by chronic inflation. The next steps taken by the BCRA could shape Argentina’s financial trajectory for years to come.

#argentina , #bitcoin , #CryptoRegulation , #Stablecoins , #cryptotrading

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