Argentina May Allow Banks to Provide Cryptocurrency Transactions, Signaling Major Financial Shift

On December 8, Argentina’s Central Bank (BCRA) is weighing lifting a longstanding ban that prevents traditional financial institutions from offering cryptocurrency trading and custody services. If implemented, the reform would mark a shift in regulatory policy—from “explicit prohibition” to “regulated integration”—driven by the country’s unique economic reality and growing domestic demand for digital assets. Right now, BCRA rules bar commercial banks from providing or facilitating cryptocurrency transactions for their customers. The rule was initially put in place to cut risks and limit the use of unregulated financial players. But the Mille administration has long taken a more pro-free-market, crypto-friendly stance overall—and is now reviewing a set of regulatory changes to let banks formally enter the crypto space under a strict new framework. This shift is essentially a pragmatic response to reality: Argentines are already some of the world’s most active crypto adopters, thanks to decades of high inflation, currency swings, and reliance on U.S. dollar-backed stablecoins to safeguard savings. The main push to formalize crypto transactions is to move the huge trading activity already happening in the shadow financial system into the regulated banking sector. For years, regular Argentines have turned to Bitcoin and stablecoins to handle the peso’s ongoing devaluation and get around foreign exchange controls. If top Argentine banks enter the crypto space, it’ll shake up the local financial ecosystem big time. Right now, the market is ruled by independent virtual asset service providers (VASPs) and homegrown crypto exchanges. Once banks step in with their massive customer bases and capital, they could quickly take the lead and put major competitive pressure on existing crypto businesses.