The central bank of Argentina has officially banned payment providers from offering cryptocurrency transactions as it intends to reduce the nation’s exposure to digital assets.

A statement from the monetary authority reveals that crypto-denominated transactions on payment apps will not be facilitated any further, unifying the rules which apply to financial institutions and fintech corporations.

The authority states that payment service providers that offer payment accounts “may not carry out or facilitate operations with digital assets, including crypto assets, that are not regulated by the competent national authority and authorized by the Central Bank of the Argentine Republic”.

Cryptocurrencies remain to be unregulated in Argentina, which essentially means that all cryptocurrencies and crypto coins will be subject to this decision. While it remains unclear how this shall impact crypto activity in the South American nation, a local media report stated that payment providers have not commented on the decision yet.

Yet, Argentina’s fintech entity urged the government to reconsider the decision, citing fears that such decision “limits access to a technology that offers multiple benefits and opportunities” for the country’s society.

Sources:

https://cointelegraph.com/news/argentina-s-central-bank-halts-cryptocurrencies-from-payment-apps

https://bcra.gob.ar/Noticias/proveedores-servicio-pago-no-pueden-operar-criptoactivos.asp

https://www.forbesargentina.com/money/nuevo-golpe-bcra-industria-crypto-impiden-ofrecer-estos-activos-proveedores-servicios-pago-n33327

https://twitter.com/CamaraFintechAr/status/1654505639207645184