Argentina Weighs Letting Traditional Banks Trade Cryptos

Argentina is considering a policy shift that could significantly alter how the country’s financial sector handles cryptocurrencies. According to reporting from La Nacion, the central bank is drafting rules that would allow commercial banks to offer custody and trading services for crypto assets, a role that has largely been filled by fintech firms and exchanges until now.

People familiar with the discussions told the outlet that work on the framework is underway, although regulators have not committed to dates or outlined the finer details of the proposal. One exchange said it expects the measure could be approved by April 2026 if the process remains on schedule.

Talk of the shift has circulated quietly for several months among industry executives, people familiar with the central bank’s internal conversations, and a small group of bankers. The move aligns with a broader effort by the government to reduce barriers around crypto asset use and bring a portion of the large informal market under closer supervision.

The stakes are unusually high in Argentina. Years of economic instability have encouraged Argentines to seek out alternatives to the peso. Dollars and cryptocurrencies have become common tools for protecting savings, and many households now treat digital assets as a practical store of value rather than a niche technology.

Allowing regulated lenders to handle crypto directly could give that demand a new path. Supporters say banks can provide clearer disclosures, stronger compliance standards, and familiar channels for deposits and withdrawals. All of that could help digital assets feel more like conventional investment products instead of something that sits at the edge of the financial system.

How much the landscape changes will depend on the fine print. The central bank still has to decide how custody rules would work, what capital requirements banks should meet, and which tokens would be allowed under the new framework.

The discussion is unfolding in the aftermath of the Libra token controversy, a scandal that damaged trust in Argentina’s crypto community and raised questions about political figures endorsing speculative projects.

The scandal erupted in February after President Javier Milei, a supporter of crypto, promoted the Libra token on X. His post sent the price soaring from a fraction of a cent to $4.50 within hours before the coin collapsed in what investigators later described as a textbook rug pull by its creators. Thousands of ordinary investors suffered heavy losses, estimated at roughly $251 million.

The central bank has alternated between allowing and restricting crypto activity in past years, even barring unregulated services from the banking system at one point. Any move toward wider acceptance would represent a major change in direction.

Industry actors like Canaan Inc. (NASDAQ: CAN) will be pleased that different jurisdictions around the world are considering reviewing or enacting regulations geared at enabling cryptos to gain widespread acceptance in those markets.

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