By
Tolu Ajiboye
April 23rd, 2024
A Bitcoin futures index in Argentina is a huge relief as the country is currently struggling with high inflation.
CNV, The securities regulator in Argentina, has approved a Bitcoin futures index on a local exchange. Following the approval, the Bitcoin futures index will launch in Argentina in May on Matba Rofex. The exchange got the green light to roll out the Bitcoin futures next month, boasting as the first Latin American exchange to onboard such a product. Authorizing the Bitcoin-based futures is part of the regulator’s strategic innovation agenda. The agenda was launched in 2022 and targeted at creating room for public-private collaboration. The aim is for such relationships to develop innovative products in the capital market.
The index will conform based on information on the price of BTC as provided by diverse price providers. Also, entities that promote the operation of the BTC/ARS pair with deposits of Argentine pesos via bank transfer are mentioned.
Bitcoin Futures Index Is Coming to Argentina Next Month
Notably, the CNV lacks power and authority over the price providers. Hence the exchange has to create an eligibility condition that the providers have current contrasts with any Payment Service provider (PSP) that is registered with the nation’s central bank- The Central Bank of the Argentine Republic (BCRA). This process will give qualifiers investors access to Bitcoin price variations transparently and securely.
Furthermore, the regulatory body in Argentina has ordered Matba Rofex SA to always alert the public of risks related to financial instruments. CNV said in the announcement:
“The initiative is an achievement of the Innovation Hub launched a year ago by this organization, a space for public-private collaboration aimed at promoting exchange with regulated companies and those entities with service technology projects and/or financial products in the field of the capital market.”
A Bitcoin futures index in Argentina is a huge relief as the country is currently struggling with high inflation. Amid the economic situation, many citizens have resorted to Bitcoin as a hedge against 60% inflation. How bad could the economy be that Argentines preferred BTC, which has been in the red for many months? The nation’s central bank forbids financial institutions from operating with digital assets. Moreso, stablecoins are another safe haven the people have found as the inflation surge persists. With the level of Bitcoin adoption in Argentina, the nation’s peer-to-peer BTC trading has reached new highs with the possibility of continued record highs as Bitcoin future index launches.
The Ministry of Economy recently released a bill on citizens’ crypto holdings. The bill proposed that crypto holders declare their possessions, incentivizing them with tax benefits. At the same time, the Bitcoin futures announcement came about a week after Binance revoked its expansion into Argentina. The world should expect more crypto-related news from the South American country.