- A new framework will enable trading, custody, and approved cryptocurrencies.
- Banks need to adhere to stringent KYC, AML, and CNV guidelines.
- Inflation has driven citizens towards Bitcoin and stablecoins.
Argentina is on the brink of a significant transformation in its approach to digital assets, with regulators formulating a strategy that could enable banks to provide Bitcoin and other cryptocurrency services for the first time in three years.
This initiative signifies a remarkable change in a nation where cryptocurrencies have emerged as essential tools for managing inflation, reflecting broader efforts to legitimize informal crypto activities.
The proposed changes are still under evaluation, but internal discussions indicate Argentina’s intention for its banking sector to play a formal role in crypto accessibility, custody, and compliance.
Evolving Banking and Crypto Regulations
Since May 2022, Argentina’s central bank, the Banco Central de la República Argentina, has prohibited banks from engaging with cryptocurrencies.
This regulation aimed to mitigate financial risks and deter money laundering during times of economic instability.
The existing policy is now at the heart of a broader examination of how digital assets could be integrated into a financial system grappling with ongoing inflation and the increasing demand for stable alternatives.
Since President Javier Milei took office in December 2023, the discourse has significantly shifted.
His administration has advocated for financial liberty, asserting that individuals should have the right to choose various currencies, including Bitcoin.
This transition has affected regulatory perspectives on the current ban and expedited efforts to establish a new framework.
Developing New Framework
Reports suggest that the central bank is in the process of crafting a system that will allow banks to incorporate cryptocurrency into their offerings.
The initiative will include trading capabilities, custody arrangements, and a catalog of approved cryptocurrencies, including BTC, ETH, USDC, USDT, and XRP.
Banks will be required to comply with rigorous CNV standards, enhanced KYC and AML protocols, and conduct crypto operations through legally distinct units that must meet additional capital, security, and liquidity mandates.
This approach signifies a shift from outright ban to regulated engagement.
Argentina could become one of the pioneering nations to integrate cryptocurrencies into mainstream banking, rather than relegating them to informal platforms.
The proposed changes also seek to close regulatory loopholes and enhance transaction transparency for citizens who already rely on these assets to safeguard their wealth.
Demand Driven by Inflation
The adoption of cryptocurrency in Argentina has surged over the past three years as families seek ways to safeguard their wealth.
With inflation hitting 1,427% in 2023 and continuing to rise by over 2% monthly, people have turned to Bitcoin and dollar-pegged stablecoins for managing day-to-day expenses, saving money, and mitigating the risks associated with the declining peso.
Regulators are now keen to formalize this activity within a protective framework.
Permitting banks to facilitate crypto services would create a safer environment, reduce reliance on unregulated exchanges, and enhance financial oversight.
It would also foster a more structured relationship between digital assets and traditional banks amid economic turmoil.
Projected Timeline Towards 2026
Though final approval is pending, analysts predict that the updated regulations may be finalized by April 2026. Work on the technical framework is already in progress.
If the initiative progresses, Argentina could serve as a notable case study in how a nation facing severe inflation incorporates cryptocurrency into its traditional financial infrastructure.
