Argentina is opening to accept bitcoin

Argentina is opening to accept bitcoin

Argentina’s National Value Commission (CNV), the country’s securities regulator, has approved a bitcoin-based index of futures contracts. This index will launch on Matba Rofex exchange and it will start trading in May 2023, It will be the first bitcoin futures index in Latin America.

The bitcoin price, as reported by a number of domestic businesses offering BTC/ARS trading pairs, will be the basis for futures contracts. The parties will need to settle transactions in Argentine pesos by bank transfer. Furthermore, all transactions will be settled in local fiat currency.

Can Bitcoin and Cryptocurrency Help Argentina’s Weakening Economy?

Many Argentinians are turning to bitcoin to avoid the consequences of high inflation rates in the country. The nationwide p2p Bitcoin trading volume is also increasing amid the rising cost of living. Also, one of the presidential candidates in Argentina for this year’s election is Javier Gerardo Milei, who is a bitcoin supporter.

p2p bitcoin

Inflation in the South American country caught the eye as it climbed to 102% in February. The most notable recent rise has been in the food and beverage industry, where prices rose 9.8% in February compared to February. January.

Laws introduced by Argentina’s Ministry of Economy are pushing more people to disclose their crypto holdings by offering tax incentives. The South American country has adopted a pro-crypto stance over time. Furthermore, cryptocurrency usage in Argentina is almost twice that of surrounding countries.

The IMF (International Monetary Fund) has stated in its World Economic Outlook Report that Argentina’s economy will grow by 0.2%. The IMF says the country will have an inflation rate of 88% by 2023.

Argentina’s CNV has accepted the index bitcoin futures contract as part of the country’s strategic renewal program. The innovation program first launched in Q1 2022. However, the aim of the program is to create space for public-private alliances to develop products for capital markets.

A regulated bitcoin futures index will provide investors with a safe means of increasing their exposure to BTC. However, CNV has also requested the Matba Rofex exchange to add warnings informing investors about the risks of using these financial instruments.

See also: Argentinian Airlines issues tickets as NFT

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