The National Commission of Value (CNV) in Argentina has given Matba Rofex, the local exchange, the approval to launch regulated Bitcoin index futures contracts. The interest in digital assets and primary cryptocurrency has surged in Argentina due to concerns about high inflation rates and political instability. The BTC index futures contracts will allow local investors to gain exposure to the crypto’s price without holding the asset directly. Deposits will be made via bank transfers in Argentine pesos. The CNV’s approval is part of a broad strategy to promote various monetary products and adopt new technologies. Matba Rofex must also have a valid agreement with a Payment Services Provider (PSP) registered with Argentina’s central bank to launch these contracts. It has become the first exchange in Latin America to offer regulated BTC futures. The platform will warn investors about the possible risks due to the notorious volatility of the asset class.
Cryptocurrencies have become increasingly popular in Argentina after political chaos and monetary issues hit the country. Last summer, numerous local crypto exchanges such as Binance and Lemon Cash reported soaring costs when buying Tether (USDT) using Argentinian pesos (ARS). This happened when the former Minister of Economy, Martin Guzman, resigned from his post, hinting at additional problems for the domestic economy. The inflation rate in Argentina is another concerning factor. The annual figures surpassed 100%, the highest since the hyperinflation in 1991, exacerbating the need for alternate investment options such as bitcoin. The leading cryptocurrency’s price has been on the rise and recorded an 80% increase since the beginning of the year, reaching the $30,000 mark. The citizens of other countries facing similar issues, such as Lebanon and Turkey, have also shifted focus toward digital assets and other tokens.