The Central Bank of Argentine Republic (BCRA) released a statement on 5th May, 2022 that it has banned banks nationwide from encouraging and offering clients the use of crypto assets.
The statement was issued on BCRA’s website which explained that banks are barred from providing services for any digital assets not managed by the central bank, and as there are no digital assets regulated by the bank currently, so it means that it is infact a complete ban.
A source close to the matter said that as of Friday banks must no longer offer customers the ability to buy and sell crypto.
“The measure ordered by the BCRA’s board of directors seeks to mitigate the risks associated with transactions with these assets that could be generated for users of financial services and for the financial system as a whole,” said the statement.
This step is taken just days after Banco Galicia, one of the biggest Argentinian banks, announced that it will begin dealing in crypto. Even the capital of Argentina, Buenos Aires showed support for cryptocurrency.
Earlier this year, Argentina’s government had hinted that it will discourage the use of cryptocurrencies as part of an approximately $45 billion debt restructuring deal with the IMF (International Monetary Fund).
The government issued a notice on March 3, and said that it would take measures to “discourage the use of cryptocurrencies with a view to preventing money laundering, informality, and disintermediation” in addition to all the other measures focused at strengthening the country’s financial condition.