At the beginning of this week, the crypto news reported that Argentina’s two largest banks want customers to trade bitcoin (BTC), ethereum (ETH) and ripple (XRP). But unfortunately, the country’s central bank is now putting a stop to that, according to a update on his website.
Argentine Central Bank Discourages Bank Crypto Services
Two banks announced this week that they will be offering crypto trading services: Banco Galicia and Burbank. The former said it would offer trading services after it conducted a poll. 60% of respondents said they want easy access to crypto.
This high percentage probably stems from another high percentage, which is inflation in the country. Argentines have been battling massive inflation for years, so they are always looking for ways to protect their capital. But crypto should not play a role in this as far as the central bank is concerned.
Crypto al bitcoin are too volatile
The update reads that the board of directors concerns an order banning banks from offering services to customers that involve digital currencies. These are currencies that are not regulated by the central bank. The reason for the order is as follows:
“The measure ordered by the Governing Council of the Central Bank is intended to mitigate the risks associated with operations involving these assets that could be generated for users of financial services and for the financial system as a whole.”
These risks are: “the high volatility, the risks associated with cyber-attacks, money laundering/terrorism financing and possible non-compliance with regulations, lack of safeguards and complete information that current regulations provide for users of financial services and the cross-border nature of these operations,” said Argentina’s central bank.