Central bank of Argentina bans the exchange of cryptocurrencies in payment platforms

Reportedly, the new strategy can limit access to technology

Experts believe the future impact of this new regulatory is still not known
Experts believe the future impact of this new regulatory is still not known

On May 4, 2023, the central bank of Argentina discontinued providing crypto transactions to payment providers, stated Cointelegraph. It is expected that this step will help to decrease the payment system’s exposure to digital assets of the country.

With insights from the monetary authority, the payment providers might not be allowed to facilitate or offer crypto payments through applications. It will eventually help to link the financial and fintech industries with the rules of the country, added Cointelegraph. 

“Payment service providers that offer payment accounts […] may not carry out or facilitate 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,”  the authority added further. 

Furthermore, the effect of this new strategy is still not known. It is believed that “it limits access to a technology that offers multiple benefits and opportunities for our society,” Argentina’s fintech chamber told Cointelegraph. 

(With insights from Cointelegraph)

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First published on: 08-05-2023 at 09:36 IST