Argentina’s Central Bank to Allow Banks to Provide Crypto Services in 2026

Core Viewpoint - The Central Bank of Argentina (BCRA) is considering lifting the ban on banks providing digital asset services, with potential new regulations expected by April 2026 [1][2]. Group 1: Regulatory Changes - The BCRA previously prohibited banks from facilitating cryptocurrency operations for clients, but the stance has shifted towards a more crypto-friendly approach following the election of President Javier Milei in 2023 [2]. - New regulations could allow banks to offer digital asset-related services, indicating a significant policy shift in Argentina's financial landscape [1][2]. Group 2: Cryptocurrency Adoption in Argentina - Argentina is recognized as a global leader in grassroots cryptocurrency adoption, largely due to an economic crisis characterized by triple-digit inflation, strict capital controls, and distrust in the local currency [3]. - The country ranks 15th globally for active crypto wallet users, with approximately 10 million users [3]. Group 3: Market Activity - From July 2023 to June 2024, Argentina is projected to have $91 billion in on-chain transaction volume, making it the most active crypto market in Latin America [4]. - Over 60% of this transaction activity involves stablecoins, which are utilized by Argentines to dollarize savings and safeguard purchasing power against currency devaluation [4]. Group 4: Regional Context - In Latin America, Brazil has established comprehensive laws for banks to provide crypto services, while Panama has a more permissive but less structured approach [5]. - El Salvador, which made bitcoin legal tender in 2021, has recently introduced a banking law allowing private banks to offer digital asset services to high-net-worth investors [5].