Argentina’s securities regulator – the National Commission of Value (CNV) – reportedly authorized the local exchange Matba Rofex to launch regulated Bitcoin index futures contracts.
Argentines have recently shown rising interest in the primary cryptocurrency and other digital assets. One factor behind the surging appetite could be the concerning inflation rate in the country and the political instability.
Additional BTC Options for the Locals
The BTC index futures contracts will enable locals to gain exposure to the price of the primary cryptocurrency without having to hold the asset. Deposits will be made in Argentine pesos – the nation’s official currency – via bank transfers.
The CNV’s approval is part of a broad strategy to embrace new technologies and promote a variety of monetary products to the population.
The domestic exchange Matba Rofex must have a valid agreement with a Payment Services Provider (PSP) registered with Argentina’s central bank to launch such contracts. Its President – Andres Ponte – praised the entity for becoming the first in Latin America to offer regulated BTC futures.
The platform will also warn investors about the possible risks when dealing with the asset class due to its infamous volatility.
Cryptocurrencies have become increasingly popular in the South American country lately. The political chaos and monetary issues could be a reason for that interest.
As CryptoPotato reported last summer, numerous local crypto exchanges, including Binance and Lemon Cash, informed that the cost of buying Tether (USDT) using Argentinian pesos (ARS) soared significantly. It is worth noting that this happened at a time when Martin Guzman – former Minister of Economy – resigned from his post, hinting about additional problems for the domestic economy.
The Disturbing Inflation
The inflation rate in Argentina is also a factor worth observing. The annual figures recently surpassed 100%, something unseen since the hyperinflation in 1991.
“The other day, I came and asked for three tangerines, two oranges, two bananas, and half a kilo of tomatoes. When he told me it cost 650 pesos [$3.22], I told him to take everything out and leave just the tomatoes because I don’t have enough money,” an elderly woman called Irene Devita described the situation in her homeland.
Contrary to the devaluation of the Argentinean peso, bitcoin’s price has headed north in the past several months. It recently reached the $30,000 milestone, recording an 80% increase since the beginning of the year.
The residents of many nations with similar issues, such as Lebanese and Turks, have previously shifted their focus toward the leading digital asset and other tokens.
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