BUENOS AIRES, Argentina—The Central Bank of the Argentine Republic (BCRA) has put a stop to all digital currency services offered by commercial banks.
The BCRA stated that no financial entity in the country may facilitate operations in unregulated digital assets, CoinGeek reported.
The directive is applicable to “crypto assets and those whose yields are determined based on the variations that they register,” the BCRA notice said. The BCRA said the move is to protect the country’s financial system and citizens from the risks that digital currencies pose.
“The measure ordered by the board of directors of the BCRA seeks to mitigate the risks associated with operations with these assets that could be generated for users of financial services and for the financial system as a whole,” the BRCA stated.
Instead of facilitating digital currency transactions, the BCRA is advising financial entities to focus on financing investments, production, marketing, and other sectors that promote import and export, CoinGeek said.
The central bankers also reminded the public of its prior warning on digital currencies released in May 2021. The long list of risks it highlighted includes high volatility, operational disruption and cyberattacks, money laundering/financing of terrorism, as well as capital flight, the report states.