Argentina Approves Bitcoin Futures Index For Trading, What’s Ahead?
A soon-to-debut Bitcoin index futures received approval of the Argentine securities regulator. According to reports, the Bitcoin futures index will be launched in May on the Matba Rofex exchange.
the exchange agency as the first regulated Bitcoin futures in Latin America. The Argentine securities regulator, the National Value Commission (CNV), approved the futures contract as part of a strategic innovation agenda in the country.
Notably, this movement started in the first quarter of 2022 and focuses on promoting public-private collaboration for new products in the capital markets.
Argentine Exchange to Launch a Regulated Bitcoin Futures Index
The Bitcoin futures contract will depend on the price of BTC on several Argentinean platforms that offer BTC/ARS trading pairs. Your investors will settle business transactions in Argentina’s national currency, Pesos, via bank transfers.
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Exchanges offering Bitcoin futures contracts must have a valid contract with a payment service provider duly registered with the Central Bank of Argentina. This is the only condition for financial regulators to approve payment transactions.
The new Bitcoin futures index would provide safe exposure to BTC for qualified investors in a transparent and regulated environment. In addition, the CNV has mandated that the Matba Rofex exchange implement alerts that alert investors to the associated risks.
Argentines turn to Bitcoin to hedge against inflation
Inflation rates in Argentina have reached a extremely high level. Residents have migrated to crypto to protect its effects. Bitcoin peer-to-peer trading volumes have reached a new all-time high as more people explore BTC investment and payment options.
This development has led the country’s Ministry of Economy to propose a new bill that motivates citizens to declare their cryptocurrency holdings. This will allow authorities to incentivize crypto holdings with tax benefits.
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The cryptocurrency-friendly atmosphere in Argentina has attracted major exchanges that are planning to expand their operations. The approval of the Bitcoin futures contract came a few days after Binance announced its expansion strategy in Argentina.
Binance even announced its new offer to allow Argentinian users to deposit fiat money into a Binance wallet and buy cryptocurrency with their balance. With recent developments, Argentina is approaching its prime time in cryptocurrency adoption.
Meanwhile, after Argentina and Brazil proposed a common currency, Coinbase CEO Brian Armstrong recommended BTC as legal tender. That suggestion drew reactions from several industry players, including Raoul Pal, founder and CEO of Global Macro Investor.
Friend opposite Brain Armstrong’s idea of BTC as a national currency, touting its high volatility. According to Pal, an asset that drops 65% during a recession and rises 10x in an uptrend is not ideal for a national fiat.
Featured image from Pixabay and chart from Tradingview.com