**Argentina’s Central Bank Plans to Allow Banks to Offer Bitcoin Services**
Argentina is on the verge of a significant transformation in its approach to Bitcoin and cryptocurrencies. The Banco Central de la República Argentina (BCRA) is reportedly in the process of drafting regulations that would permit commercial banks to provide Bitcoin and cryptocurrency trading and custody services to their clients. If these regulations are approved, they could be implemented as soon as April 2026, marking a reversal of a ban that was instituted in May 2022.
At that time, the BCRA prohibited banks from engaging in or facilitating transactions involving digital assets, citing concerns over financial stability and the potential for money laundering. Since the ban, cryptocurrency transactions in Argentina have largely occurred through informal channels or offshore exchanges.
Under the proposed regulations, banks would be able to integrate cryptocurrency services directly into their mobile applications and accounts, enabling the trading and custody of select cryptocurrencies, including Bitcoin. These operations would be managed through separate legal entities that would adhere to stricter capital, security, and liquidity requirements. Furthermore, banks would be mandated to comply fully with know-your-customer (KYC) and anti-money-laundering (AML) regulations, in accordance with the standards set by Argentina’s National Securities Commission (CNV).
**Bitcoin as a Hedge Against Inflation**
This regulatory shift is part of a broader initiative to modernize Argentina’s financial services. The country has faced persistent high inflation and stringent currency controls, prompting many citizens to turn to cryptocurrencies as a means of safeguarding their savings. According to Chainalysis, Argentina ranks 15th globally in terms of active cryptocurrency wallet users, with approximately 10 million accounts. Between July 2023 and June 2024, the nation processed an estimated $91 billion in on-chain transactions, with over 60% involving stablecoins.
The recent policy shift has been influenced by President Javier Milei, who took office in December 2023. He has been a proponent of greater financial freedom, advocating for access to alternative currencies. Under his leadership, the BCRA has expressed a willingness to reconsider previous restrictions. Local banks are now showing renewed interest in re-entering the cryptocurrency market, with some having previously tested in-app trading features before the 2022 ban. They are now preparing to implement systems that could support regulated cryptocurrency services once the necessary approvals are obtained.
**Aligning with Global Trends**
Argentina’s move aligns with regulatory trends observed in other regions. In the United States, the repeal of the Securities and Exchange Commission’s SAB121 in January 2025 has allowed major banks like Citi and State Street to plan for cryptocurrency custody services. Similarly, European banks have increasingly incorporated cryptocurrency offerings for retail clients.
While the draft framework in Argentina is still under review, authorities are assessing risk controls, reporting standards, and the types of assets that banks may support. This potential regulatory evolution could significantly reshape the landscape of cryptocurrency services in Argentina.
**FAQ**
**Q: What changes is Argentina’s central bank proposing regarding cryptocurrencies?**
A: Argentina’s central bank is drafting regulations to allow commercial banks to offer Bitcoin and cryptocurrency trading and custody services, reversing a previous ban from 2022.
