Argentina Considers Allowing Traditional Banks to Engage in Cryptocurrency Trading

Argentina's central bank is contemplating new regulations that would permit traditional banks to provide trading and custody services for cryptocurrencies. This shift may transform the country's cryptocurrency environment, especially as local demand for digital assets continues to grow amid inflation and currency challenges.

Key Takeaways

Argentina's central bank is drafting regulations for banks to trade cryptocurrencies.
This change could significantly impact how Argentines interact with digital assets.
Analysts predict that regulated banks can offer a more secure and reliable way to manage cryptocurrencies.
The discussions arise in the context of past controversies like the Libra meme coin scandal.
The central bank aims to integrate the growing crypto market into the formal financial system while managing potential volatility.

Argentina

Argentina's Moves Towards Cryptocurrency Integration

The central bank of Argentina is reportedly considering a transformative approach that could reshape the country's cryptocurrency landscape. Officials are in the process of creating regulations that would allow traditional banks to engage in trading and custody of digital assets—an activity that, until now, has primarily been the domain of exchanges and fintech companies.

According to a report from local news outlet La Nacion, although no specific timeline or detailed plans have been provided, there is optimism that these measures might be approved as early as April 2026. If this prediction holds true, it represents a significant and timely development for Argentina's financial sector.

This concept has been quietly discussed among crypto exchanges, some bankers, and regulatory insiders for several months. It aligns with a broader governmental initiative aimed at easing restrictions on cryptocurrency use and incorporating significant crypto activities into the established financial system.

Rising Crypto Demand Amid Economic Turmoil

For Argentina, the implications of this potential change are even more pronounced than in other markets. Persistent inflation and restrictive currency controls have driven many savers towards stable alternatives, such as the U.S. dollar and cryptocurrencies. As a result, digital assets have emerged as a parallel investment option for numerous households across the country.

Estimates indicate that Argentines are now six times more likely to regularly use cryptocurrencies compared to individuals in the average Latin American nation. Enabling banks to facilitate crypto transactions and hold assets on behalf of their clients could provide a new, more structured channel for this growing demand. Analysts suggest that regulated banking institutions might offer users familiar access points, clearer disclosures, and stronger compliance measures. This could help establish digital currencies as legitimate investment choices instead of simply existing as speculative assets.

However, the actual impact of these initiatives will largely depend on the guidelines set by the central bank regarding crucial aspects such as custody standards, capital treatment, and which cryptocurrencies will be permitted.

The Libra Controversy and Its Effects on Crypto Discussions

The discussions surrounding banking involvement in cryptocurrency occur against the backdrop of the infamous Libra meme coin scandal, which damaged public trust in Argentina's crypto environment and raised pressing concerns regarding the political promotion of speculative tokens.

This controversy began in February 2025, when President Javier Milei, known for his libertarian economic principles and support for digital currencies, publicly endorsed the Solana-based Libra token via a post on X. He described it as a mechanism for "market-driven innovation" to liberate the economy from reliance on the peso.

The token's price surged from mere fractions of a cent to over $4.50 within hours of the president's endorsement, pushing its valuation to approximately $4.6 billion before plummeting by more than 96%—a collapse deemed a classic "rug pull" orchestrated by its creators at Kelsier Ventures.

This incident left many investors, including ordinary Argentines who interpreted the president's remark as an official endorsement, with significant losses estimated between $100 million and $251 million.

Argentina's central bank has historically oscillated between acceptance and strict regulation, previously prohibiting unregulated crypto services within the banking environment. A shift toward more openness would represent a notable change in stance. For now, officials are carefully exploring how to incorporate this rapidly growing market into the traditional financial ecosystem while minimizing the risk of excess volatility.