During the crisis in Argentina, the sports world also has to try new things to keep its head above water. Because of this, the Argentine sports industry is now seeing its first signing of a local footballer using cryptocurrencies.
Transfer paid in USDC
It concerns the transfer of the midfielder named Giuliano Galoppo, from Banfield’s Athletic Club to Sao Paulo Futebol Clube. The money tied up with this transfer was paid in USD Coin (USDC). The transfer was made possible through a partnership with Mexican cryptocurrency exchange Bitso. The director of Bitso in Brazil, Thales Freitas, said the following:
We are very proud to partner with these two clubs for this historic signing of Sao Paulo with all the security, transparency and flexibility that the crypto economy has to offer.
Difficult economic package for sports clubs, among other things
Artentine sports clubs are in the middle of a difficult economic situation in the country. For example, the reported exchange rate gap between pesos and dollars continues to escalate. This has a negative effect on the possibility for footballers to be signed by international teams. Negotiations for new contracts when a player is already at the sports club becomes more difficult as a result.
As a result, the country has a very unstable economy. However, this has led to a large adoption of cryptocurrencies, especially stablecoins. The trend towards stablecoins actually escalated almost immediately after the shocking resignation of Argentina’s economy minister that happened earlier this month.
Due to the increase in crypto adoption, this is now the first time clubs are using cryptocurrencies as a form of payment for international transfers. This allows them to find another competitive advantage in the market for their players. Although crypto transactions are still new compared to fiat currencies, this transaction is subject to regulation.
Export operation
According to Bloomberg, Argentine central bank sources have clarified that the Galoppo transfer is an export operation. As a result, Banfield will be forced to liquidate their USDC in local currency, pesos, using the official exchange market.
However, it currently remains unclear how the professional footballer chooses to exchange USDC directly to the official exchange market, while the club can resist the measures of the central bank. It is not known exactly what effect the crypto adoption in Argentina will have on global prices.
