Argentina’s central bank has called on the country’s payment service providers to stop allowing support for crypto assets.
In a new announcement, the Banco Central De La Republica Argentina (BCRA) says payment service providers are not allowed to transact with crypto.
“Payment service providers offering payment accounts are prohibited from conducting or facilitating operations with digital assets, including crypto-assets, that are not regulated by the competent national authority and authorized by the Central Bank of the Argentine Republic.”
Argentina’s central bank’s move to block payment apps from offering crypto services comes as the country’s currency is rapidly declining.
The Argentine peso is currently down more than 98% against the US dollar, according to the government-approved exchange rate. However, the black market exchange rate used by Argentines is reportedly nearly twice as weak as the official rate recognized by the government.
Bitcoin (BTC) is currently at an all-time high when priced in the Argentine peso.
The central bank says that with the ban it wants to minimize the risks of using cryptocurrency for its citizens.
“The measure ordered by the BCRA is designed to mitigate the risks that operations involving these assets may pose to users of financial services and the national payment system. This standard equates the rules with which PSPCPs (payment service providers offering payment accounts) and financial institutions must comply. The latter have already had a restriction to the same effect since May 2022, distributed via Notice A 7506.”
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Featured image: Shutterstock/SvetaZi/Natalia Siiatovskaia