Despite the overall bearish sentiment in the crypto sector, two of the largest banks in Argentina - Banco Galicia and Brubank, have announced that they will allow customers to make crypto purchases, Bitcoin included.
Furthermore, a report from Bloomberg shows that 60% of the respondents asked for more access to crypto, which is among the main factors in the banks’ decision to onboard the crypto bandwagon and allows for crypto trading.
The news was confirmed by an affiliate at market research firm Americas Market Intelligence, Ignacio Carballo, who shared screenshots of Banco Galicia’s updated online app, with the added support for Bitcoin (BTC), Ether (ETH), USD Coin (USDC) and Ripple (XRP) purchases.
Crypto adoption in Argentina intensifies
The news of Banco Galicia and Brubank adding crypto support doesn’t seem to surprise experts, due to Argentina ranking sixth in the crypto adoption rankings for 2021, with an estimate of 21% of Argentines having used or owned crypto by 2021.
The adoption, according to experts, is due to Argentina’s heavy inflation, reaching 55% in April, while cryptos were seen as a possible inflation hedge among Argentines.
Furthermore, the mayor of Argentina’s capital Buenos Aires, Horacio Rodriguez Larreta, made a step forward in bringing cryptos to the city by announcing late last month that the city would begin accepting crypto as payment for public financial services. Apart from taking crypto for public services payments, Larreta added that Buenos Aires also plans to launch a blockchain-based digital identification (DID) platform for its residents.
South America and Africa lead crypto adoption
Apart from Argentina, other nations in South America and Africa are also looking into crypto assets. For instance, Brazil’s Senate approved the much-awaited Bitcoin law, which puts the local crypto industry in some kind of regulatory framework. However, the law is still not in effect, since it needs to pass one more committee to be signed into law by President Jair Bolsonaro.
Furthermore, Africa’s largest crypto-trading country – Nigeria, is rethinking its crypto ban, pushed by the massive adoption of crypto assets in the country. Also, Panama and the Central African Republic (CAR) are updating their policies to better “give legal clarity to the use of crypto assets and digital economy platforms” and “create employment and promote financial inclusion.”
Institutions join mining
The heavy inflation, as well as the rising popularity of crypto assets, have pushed the town of Sorradino in Argentina to buy mining rigs and start a mining operation as a way of earning Bitcoin to fight inflation. However, the estimated income for the current mining setup in the town of Sorradino was estimated to be several hundred United States dollars per month.