Argentina’s central bank is reportedly weighing a move that could redraw the country’s crypto landscape, drafting rules that would let traditional banks offer trading and custody services for digital assets after years of leaving that business to exchanges and fintech platforms.
Local outlet La Nacion reported Friday that the officials are working on a regulation that would open the door for lenders to handle cryptocurrencies directly, although they have not committed to a timetable or disclosed key details.
One exchange operating in the country believes the measure could win approval around April 2026, signalling a relatively near-term shift if the process stays on track.
The idea has circulated quietly for months among exchanges, people close to regulators and a handful of bankers. It fits with a broader push inside government circles to ease restrictions on crypto use and bring part of the activity that already happens at scale into the formal financial system.
Crypto Demand Surges As Argentines Seek Stability Amid Inflation
For Argentina, the stakes are higher than in most markets. Years of inflation and currency controls have pushed savers toward dollars and digital assets, and crypto has become a parallel store of value for many households.
By one estimate, Argentines are now six times more likely to use crypto on a daily basis than residents of the average Latin American country.
Allowing banks to trade and hold crypto on behalf of clients could give that demand a new channel. Analysts say regulated lenders can offer familiar on-ramps, clearer disclosures and more robust compliance checks, which together may make digital assets feel less like a grey market product and more like a standard investment option.
The real impact, they caution, will depend on how the central bank draws the lines on issues such as custody standards, capital treatment and which tokens qualify.
Libra Scandal Casts A Long Shadow Over Argentina’s Crypto Debate
The debate is unfolding in the long shadow of the Libra meme coin scandal, a blow that shook confidence in Argentina’s crypto scene and raised uncomfortable questions about political promotion of speculative tokens.
That episode erupted in Feb. 2025 when President Javier Milei, known for his libertarian economic agenda and enthusiasm for digital assets, posted on X endorsing the Solana-based Libra token as a tool for “market-driven innovation” and economic liberation from the peso.
The coin’s price raced from fractions of a cent to more than $4.50 within hours of his post, lifting its fully diluted valuation to around $4.6b before collapsing more than 96% in what investigators described as a classic rug pull by its creators at Kelsier Ventures.
Thousands of investors, many of them everyday Argentines who took the president’s message as a green light, were left holding the bag, with losses estimated between $100m and $251m.
Argentina’s central bank has swung between tolerance and crackdowns in the past, at one point barring unregulated crypto services in the banking system, and any turn toward openness would mark a significant change in stance.
For now, officials appear to be testing whether they can bring a fast growing market into the tent without importing too much of its volatility into the traditional financial system.
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