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Argentina’s securities authority – the National Commission of Value (CNV) – has reportedly granted approval for the local exchange Matba Rofex to introduce regulated Bitcoin index futures contracts.
Recently, Argentinians have displayed an increasing interest in the leading cryptocurrency and other digital assets. One contributing factor to this growing demand may be the alarming inflation rate in the nation and the ongoing political uncertainty.
Additional BTC Options for the Locals
The BTC index futures contracts will allow locals to gain exposure to the value of the primary cryptocurrency without needing to possess the asset. Deposits will be accepted in Argentine pesos – the official currency of the country – through bank transfers.
The CNV’s endorsement is part of a comprehensive strategy to adopt new technologies and encourage a range of financial products for the populace.
The domestic exchange Matba Rofex is required to have a valid agreement with a Payment Services Provider (PSP) registered with Argentina’s central bank to initiate such contracts. Its President – Andres Ponte – commended the organization for being the first in Latin America to provide regulated BTC futures.
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The platform will also inform investors about the potential risks associated with this asset class due to its well-known volatility.
Cryptocurrencies have gained significant traction in the South American nation recently. The political turmoil and financial challenges may be contributing factors to this interest.
As CryptoPotato reported last summer, several local crypto exchanges, including Binance and Lemon Cash, indicated that the price of purchasing Tether (USDT) with Argentinian pesos (ARS) surged considerably. This occurred during a period when Martin Guzman – the former Minister of Economy – resigned, signaling further complications for the national economy.
The Disturbing Inflation
The inflation rate in Argentina is another critical aspect to monitor. Recent annual figures have exceeded 100%, a level not seen since the hyperinflation of 1991.
“The other day, I came and asked for three tangerines, two oranges, two bananas, and half a kilo of tomatoes. When he told me it cost 650 pesos [$3.22], I told him to take everything out and leave just the tomatoes because I don’t have enough money,” described an elderly woman named Irene Devita regarding the situation in her country.
In contrast to the depreciation of the Argentine peso, Bitcoin’s price has risen in recent months. It recently achieved the $30,000 mark, reflecting an 80% increase since the start of the year.
Residents of various countries facing similar challenges, such as Lebanon and Turkey, have previously turned their attention to the leading digital asset and other cryptocurrencies.
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