Long hostile to the integration of cryptocurrencies into the banking system, Argentina seems ready to change course. The central bank is now studying a framework that would allow banks to offer crypto services under increased supervision.
To Summarize
The Argentine central bank is considering lifting the crypto ban imposed on banks since 2023.
The country would shift from a logic of prohibition to a strict regulation of uses.
This evolution could permanently transform the local crypto market.
A regulatory shift in a country under monetary pressure
Argentina has never been neutral ground for cryptocurrencies. Marked by decades of chronic inflation, capital controls, and distrust of the peso, the population turned to the dollar early on, and then to digital assets.
Until now, the response from authorities had mainly consisted of keeping banks at a distance from the crypto market. Since 2023, financial institutions simply did not have the right to offer services related to cryptocurrencies, whether for custody, trading, or intermediation.
The recent statement from the Argentine central bank thus marks a clear break. The institution now considers lifting this ban and allowing banks to operate in the crypto universe, provided they comply with a new strict regulatory framework. This shift marks a change in doctrine.
Authorities no longer seek to block uses; they now admit a simple reality: cryptocurrencies are already part of the country's economy. The objective changes; it's no longer about preventing adoption but about guiding and containing it.
This repositioning comes in a very specific political and economic context. Argentina wants to rebuild the credibility of its financial circuit while integrating a population accustomed to other monetary paths. Integrating crypto into the banking system therefore does not reflect any ideological momentum.
This is a pragmatic choice, almost constrained, dictated more by usage than by convictions. Regulating what already exists would allow for better monitoring of flows, enhancing transparency, and reducing certain systemic risks.
Banks authorized to enter the crypto market under strict conditions
KYC and AML standards would remain central to discussions to reduce risks. Money laundering, circumvention of rules, financial abuse. None of this should pass. This line translates one thing: the authorities' concerns do not disappear.
Cryptocurrencies are tolerated as long as they fit into a controllable regulatory architecture. By allowing banks to become crypto intermediaries, the state indirectly regains control over a market previously dominated by local or foreign platforms.
less easy to supervise.
Banking institutions already have control and reporting tools that authorities deem essential.
Such an evolution could profoundly alter the balance of the Argentine crypto market. Local exchanges face new competition from institutions likely to offer lower fees, improved security perceptions, and a direct relationship with the banking system.
Bitcoin and stablecoins at the heart of the proposed framework
If the project goes ahead, not all digital assets would be treated equally. Argentine authorities are targeting their efforts. These assets are already at the heart of the informal and semi-formal economy, used as protection against inflation and as an alternative form of savings.
Bitcoin is establishing itself as a digital safe haven for part of the population. Dollar-backed stablecoins fulfill a more immediate function, that of mitigating the instability of the local currency. By integrating them into the banking perimeter, the state does not seek to eliminate these uses, but to regulate them.
The balance remains precarious. Too many constraints would push users towards unregulated circuits. But too much flexibility would render control illusory. And finally, too much laxity would expose the financial system to risks it does not yet control.
This choice also reveals an implicit hierarchy of cryptocurrencies. In the long term, this could reinforce the dominance of Bitcoin and stablecoins in a country already very crypto-compatible in daily use.
For the crypto ecosystem, the effect remains ambiguous, as this evolution plays on two fronts. It legitimizes uses but can also open the door to more institutional capital. Two dynamics that move forward together without always going in the same direction.
On the other hand, it reduces the space of freedom that had fostered innovation and rapid adoption. For banks, it is an opportunity to capture an already mature market, but also the risk of exposing their balance sheets to volatility that is still poorly accepted.
