Argentina has a new approach in mind to Bitcoin.
Argentina’s central bank, the Banco Central de la República Argentina (BCRA), is reportedly Drafting rules would permit commercial banks to provide bitcoin and cryptocurrency trading services and custody to their customers.
New regulations that are approved could be in effect by April 2026.
Potential changes would include reverse a ban The BCRA will be implemented in May 2022. The BCRA will be in place by then. prohibited In order to protect financial stability, banks are not allowed to carry out or facilitate operations with digital assets.
Since then, the majority of crypto-related activity in Argentina is conducted through offshore exchanges or informal channels.
In the framework proposed, Argentina’s banks could incorporate crypto services into their applications and accounts. This would enable the trading and custodial of selected cryptocurrencies such as Bitcoin.
This would require separate legal units to be created, with higher requirements for capital, liquidity, and security. Additionally, banks would be required to fully comply with know-your-customer (KYC) and anti-money-laundering (AML) standards, in alignment with regulations set by Argentina’s National Securities Commission (CNV).
Bitcoin and inflation
Officials have signaled The move was part of an overall effort to modernize the financial sector. Argentina’s high inflation rates and currency restrictions have pushed its citizens towards cryptocurrencies to protect their savings.
As per ChainalysisArgentina is ranked 15th in the world for crypto wallet usage, having around 10,000,000 accounts. In the period between July 2023 to June 2024 Argentina processed approximately $91 billion worth of on-chain transaction, with more than 60% involving stablecoins.
Bitcoin-friendly Since assuming office in December 20,23, Javier Milei’s influence on policy has been significant.
He advocates for greater financial freedom including the use of alternative currencies. BCRA’s willingness to reconsider restrictions has increased under his administration.
Banks in the local market have expressed interest to reenter the crypto-market. Several banks had tried out in-app trading before the ban of 2022. They are now preparing the systems to support crypto services when approval is given.
Argentina has followed the US SEC in its lead
It is a move that mirrors the regulatory trend in other countries. After the SAB121 repeal in the U.S. on January 20, 2025, major banks like Citi and State Street were able to plan their crypto custody service. European banks are also increasingly integrating crypto services for their retail customers.
The draft of the framework for Argentina is still not final. Authorities are reviewing risk control, reporting standards and the assets which banks could support. It has been stressed that innovation must be balanced with market stability and consumer protection.
If Argentina implements this, it could be a great example of how to combine traditional banking and digital assets within an economy with high inflation. The experience of Argentina could be used by other countries that rely on crypto as a hedge against currency fluctuations.
BCRA does not have a confirmed timeline. However, internal sources indicate that the BCRA could make a decision by April 20,26.
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Source: bitcoinmagazine.com
