Argentina: Banks Bow to Public Pressure For Crypto

Two banks in Argentina are to offer cryptocurrency services to clients as a result of overwhelming public demand.

Banco Galicia, the country’s biggest bank by market value, and digital bank Brubank, will offer customers the ability to buy bitcoin, ether, USDC, and XRP from Monday.

The announcement follows a customer survey in which 60% of clients said they want their banks to allow the easy purchase of crypto.

“This motivated us to push this project,” said two senior Banco Galicia officials in a statement. They further noted that the younger demographic showed the most interest. 

Both Bank Galicia and Brubank are joining forces with Lirium, a crypto product from Liechtenstein used for crypto-wallets. The banks’ clients will be able to buy and sell digital assets using the same platform provided by Lirium, which is used to purchase stocks and bonds. 

Banco Galicia will offer the service to clients whose salaries are deposited into their bank accounts by their employers.

According to a survey, interest in cryptocurrencies is booming in Latin America. A quarter of Brazilian respondents said they intend to buy cryptocurrencies in the next 12 months. 

Peru’s adoption is only 1%, but 12% of respondents said they would buy cryptos in the next twelve months. On the other hand, Argentina expects a 235% increase in adoption.

Last Sept, Argentina’s Central Bank president said that cryptocurrencies must be closely monitored to prevent their use in bypassing foreign exchange regulations. 

Argentina central bank president warns of volatility

He also expressed concern over their volatility as a reason why they could not be used as currencies. In Sept, Argentina’s Central Bank president said that cryptocurrencies must be closely monitored to prevent their use in bypassing foreign exchange regulations. 

Argentines have suffered from currency devaluation as inflation increased, prompting the migration to crypto as a hedge. 

In 2019, following a stock market crash, the country experienced a record high in bitcoin trading volume on over-the-counter exchange LocalBitcoins.