Argentina central bank mulls allowing banks to offer crypto services
Argentina’s central bank (BCRA) is reportedly reviewing rule changes that would allow domestic banks to trade digital assets and offer crypto-related services, reversing a prior 2022 restriction that barred banks from such activities. Sources cited by La Nación say the BCRA is examining a relaxed framework but has not published a timetable or details; a local exchange suggested approval could come as early as April 2026. The proposal follows recent tighter oversight for virtual-asset firms — Argentina’s securities regulator required VASPs to register from April 2024, and major exchanges (Coinbase, Binance, Bybit) secured local approvals in 2024. Rising crypto adoption in Argentina, driven by very high inflation and peso weakness, has made the market the second-largest in Latin America by volume (Chainalysis: $93.9bn July 2022–June 2025). The report also references a political episode where President Javier Milei briefly promoted a memecoin ($LIBRA), underscoring reputational and fraud risks. For crypto traders, bank participation could materially improve fiat on‑ramps, custody and liquidity, and may increase stablecoin and USD-denominated crypto use — factors likely to affect local market depth and volatility. Traders should monitor official BCRA guidance, implementation timelines, and bank onboarding plans, as formal banking access could shift flows and short-term price dynamics in Argentine crypto markets.
Bullish
Allowing banks to offer crypto services would likely increase fiat-to-crypto liquidity, broaden on‑ramps and custody options, and attract institutional and retail funds into local crypto markets—factors that are typically supportive of higher prices and deeper markets. Short-term effects could include spikes in volume and volatility as banks onboard customers and flows adjust, and selective asset rallies (notably stablecoins and USD‑pegged tokens) as savers seek dollar alternatives. Over the medium to long term, formal banking participation tends to lower frictions and counterparty risk, improving market access and encouraging adoption, which is bullish for demand. Remaining downside risks include regulatory reversals, reputational incidents (e.g., the memecoin episode) and operational or compliance delays; these could mute immediate positive price action but do not negate the structural bullish case if banks ultimately enter the market.