Is IMF Behind Argentinian Bank Dropping Crypto?

Central Bank of Argentina put a stop to Argentinian banks offering crypto. Did the IMF have something to do with it?

Covered:

  • Argentina’s Central Bank Steps In
  • Banco Galicia v. IMF

Argentina’s Central Bank Steps In

Just four days after Banco Galicia started offering several cryptocurrencies to its customers, Argentina’s central bank The Central Bank of the Argentine Republic (BCRA) has stepped in and took away the privilege from its country’s private banks. Banks will no longer be able to offer buying and selling to its customers.

“The measure ordered by the BCRA’s board of directors seeks to mitigate the risks associated with transactions with these assets that could be generated for users of financial services and for the financial system as a whole,” the BCRA said via a released statement.

Banco Galicia was only offering the buying and selling of BTC, ETH, USDC, and XRP. The largest private bank in Argentina wasn’t offering any advanced crypto services like staking or futures products. The private Argentinian bank quietly started offering crypto buying and selling to its customers on Monday. No formal announcement was made ahead of the offering, instead, news filtered out as users of the bank’s app started asking via Twitter if they were really offering the service.

Banco Galicia v. IMF

It appears Banco Galicia tried to ask for forgiveness, but the BCRA wasn’t having it. Back in March, Argentina signed a 45 billion dollar debt deal with the IMF. The deal included a provision that strongly “discourages” the use of cryptocurrencies.

Back in March, the IMF said, “To further safeguard financial stability, we are taking important steps to discourage the use of cryptocurrencies with a view to preventing money laundering, informality and disintermediation.” This, because, obviously money laundering only occurs at banks when crypto is involved. It’s never happened otherwise. Except for this one time, and, this other time. And, here’s one more. I’ll stop now.

What exactly IMF is protecting Argentina from is unclear. It tried the same thing with El Salvador, but their president Nayib Bukele swiftly rejected any such notion. On the matter, El Salvador’s Treasury Minister Alejandro Zelaya said that, ““Countries are sovereign nations and they take sovereign decisions about public policy.”

Recommended: What’s Going On With Terra In South America?

Source