For the first time in Latin American history, the Bitcoin Futures Index has received regulatory approval in Argentina.
Local media reports stated that the BTC futures contract would initially start trading in May on the Matba Rofex exchange after receiving approval from the National Commission of Value [CNV], the country’s securities regulator.
According to the post, the aforementioned index will be calculated using data on the price of Bitcoin provided by various price sources, organizations that support the functioning of the BTC / ARS pair, and deposits of Argentina pesos made by bank transfer.
The regulator’s approval is part of a strategic innovation goal that was established in the first quarter of 2022, the article read.
…intends to adapt to the regulatory challenges imposed by new technologies for the provision of financial products. As well as promoting the development of new and innovative products by its regulated subjects in the capital market.
Also, CNV established the requirements for exchanges for the nation’s provision and usage of payment services.
Exchanges based in Argentina must have a working agreement with a payment services provider or PSP that is authorized by the BCRA, the Central Bank of the Argentine Republic.
By trading derivative goods under-regulated market infrastructures, qualified investors will be able to have exposure to Bitcoin price fluctuations in a secure and transparent manner, it stated.
Moreover, CNV has asked its authorized crypto trading platform Matba Rofex SA to include alerts intended for the investing public that warn about the dangers of this activity and potential outcomes in the conformation of said instrument.
Amidst the nation’s soaring inflation, its peer-to-peer Bitcoin trade volume has risen to new heights. This opens a wide range of opportunities for crypto assets as people tend to seek out a better store of value.
Many advocates of crypto even argue that this is a counter-inflationary asset.
Bitcoin’s Addition Will Revolutionize Developing Economies
The biggest digital asset exchange in the world, Binance, recently announced plans to increase its presence in Argentina. The post claimed that Binance will make it possible for Argentinians to buy and sell digital assets using their own pesos.
The news holds significance for the inflation-stricken Argentina peso and demonstrates the necessity for a decentralized, crypto-based financial system to better control inflation.
There is a growing push to remove reliance on inflated local currencies in favor of a crypto-based financial system as developing economies like Argentina struggle with economic issues brought on by ineffective central bank policies.