Argentina May Allow Banks to Offer Crypto Services from April 2026
Argentina’s central bank (BCRA) is drafting rules to lift its ban on banks providing cryptocurrency services, potentially allowing banks to offer trading, custody and other digital-asset services to retail customers from April 2026. The policy shift follows President Javier Milei’s 2023 election and broader moves this year to regulate virtual asset service providers (VASPs). Chainalysis data cited in reports highlights Argentina as a major crypto adopter — roughly 10 million active wallets and about $91 billion in on-chain volume between July 2023 and June 2024, with over 60% of activity involving stablecoins such as USDT. The proposed framework would bring Bitcoin, stablecoins and other digital assets under stricter KYC/AML controls and new capital and liquidity requirements for banks. If implemented, private banks could compete with local exchanges to let customers buy, sell and store crypto directly through bank accounts, potentially lowering fees, improving convenience and increasing retail access and liquidity. Authorities are finalising VASP rules and assessing risks; bank participation may begin in 2026 pending regulatory approval. Analysts say bank involvement could legitimise crypto, accelerate stablecoin use for dollarisation and savings protection, and strengthen oversight — but it also raises integration and financial-stability considerations for the banking sector.
Bullish
Allowing banks to offer crypto services is likely bullish for the mentioned digital assets — especially stablecoins and major on-chain currencies like BTC — because bank involvement typically increases retail access, on-ramps, liquidity and perceived legitimacy. Short-term effects: announcement-driven demand may lift stablecoin issuance/use and trading volumes as traders and savers position for easier on/off ramps and lower fees; local exchanges could see competition, pressuring fees and spreads. Volatility may rise near key regulatory milestones (draft publication, consultations, final rule). Long-term effects: integration of crypto into traditional banking can broaden adoption, deepen liquidity, and reduce friction for peg-stable assets used for dollarisation in Argentina, supporting price stability and higher on-chain volumes. Offsetting risks include tighter KYC/AML and capital requirements that could constrain certain flows, plus operational and financial-stability concerns that might prompt phased or restrictive rollouts. Overall, greater bank participation tends to support demand and market depth for the covered assets, making the net price impact positive.