The Central Bank of Argentina did not approve of the readiness of banks to work with cryptoactives – Bits Media

The Central Bank of Argentina warned financial institutions against working with digital assets in connection with their volatility and high level of risk.

According to the Central Bank of Argentina (BCRA), Digital assets are not regulated by state bodies of the country, so Banks and financial organizations cannot carry out operations with them and promote customers in these transactions.

BCRA Board of Directors considers, that the ban on working with digital assets will reduce risks, which may arise for bank customers, and for the financial system as a whole. The regulator reminded, that the activities of financial institutions should be aimed at financing investments, production, sales, as well as consumption of goods and services, to stimulate their exports and internal demand.

If banks are served by unregistered entities, participating in transactions with crypto actures, This can lead to a violation of the established rules. The Central Bank is afraid, that in addition to the high volatility of cryptocurrencies, People can lose money due to possible operating failures and cyber attacks.

Besides, Cryptocurrencies can be used to launder money and finance terrorism, The regulator said. His fears are intensified due to the risks of possible non-compliance with the rules of exchange in the commission of international transactions, The ambiguity of the regulation of crypto industry and the lack of guarantees for users of financial services.

The warning of the Central Bank followed a few days after, As the two largest Argentinean banks Banco Galicia and Brubank reported, that their clients will be able to trade BTC, ETH, XRP and Staiblkinami USDC. Banks decision to add support for crypto acts is associated with the desire of their customers to get simplified access to the cryptocurrency market.

However, the statement of the Argentine Central Bank regarding cryptocurrencies was quite expected. President Bcra Miguel Angel Pese (Miguel Ángel Pesce) and previously spoke out against cryptocurrencies, calling them unstable assets.