Argentina’s Central bank joins the crypto blacklist following a decree to stop commercial banks from conducting crypto trades.
On Thursday, the Central Bank of Argentina announced that it had stopped financial institutions in the country from facilitating crypto-related transactions. According to the apex bank, no form of digital currency hosted on the blockchain has been endorsed.
This news came on the heels of the decision from the country’s largest private bank to render services associated with digital currencies. Banco Galicia had announced that customers could buy and sell cryptocurrencies using its platform. Digital assets available for trading included Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and USD stable coin (USDC).
According to the central bank, this measure aims to protect its citizens from the risks associated with buying and selling crypts. The report recalled that the country’s apex bank and National Security Commission warned about the risks of trading digital assets.
“Some cases of risks associated with this type of operation were mentioned: the high rate of volatility, the risk of operational problems and hacker attacks, money laundering to finance terrorism”, recalled the Central Bank.
Nigerian Central Bank Shares Similar Sentiments
Argentina will be one of the countries that have prohibited its financial institutions from associating with cryptocurrencies. The Central Bank of Nigeria (CBN) made a similar move to ban commercial banks from affiliating with crypto platforms. Citizens of the African country have since resorted to peer-to-peer transactions to gain access to the force market.
The CBN fined four banks for failing to comply with the ban in a more recent effort to reinforce its anti-crypto stance. The announcement was an unwelcome development as many crypto proponents took to social media to express their dissatisfaction.
Data from Statista shows that Argentina is suffering from its second-worst year in inflation rates. The country has recorded three consecutive rate increases since 2022.
Source: Statista
Citizens of both countries have suffered considerably from inflation, thereby leading to a desperate need for a hedge. With a year-on-year inflation rate of 55%, Argentina is one of the worst-hit in the world. On the other hand, lawmakers in Nigeria have proposed using coins in a desperate attempt to curb inflation and depreciation of its local currency.
Do you think more countries will join Argentina and Nigeria in banning cryptos? Let us know your thoughts in the comment section down below.
Kingsley is a fintech writer with over 4 years of experience covering blockchain and cryptocurrency news. Alo first discovered Bitcoin in 2016 and has been passionate about it ever since, particularly the various ways blockchain can help Africa and the world at large. He desires to give the crypto space a more geographically balanced narrative and serve as a bridge between Africa and the rest of the world. His articles have been featured in Cointelegraph, Beincrypto, and Forkast.news, among others.
