According to BlockBeats news, on December 8, the Central Bank of Argentina (BCRA) is considering lifting the long-standing ban on traditional financial institutions providing cryptocurrency trading and custody services. If implemented, it will mean that regulatory policies will shift from "explicit prohibition" to "regulated integration", driven by the country's special economic reality and the growing demand for digital assets in the country.

Currently, the BCRA regulations prohibit commercial banks from offering or facilitating cryptocurrency transactions to their customers, which was originally established to reduce risk and discourage the use of unregulated financial entities. However, President Milley's government has always taken a more free-market and overall pro-crypto stance, and is evaluating a series of regulatory reforms that will allow banks to formally enter the market under a strict new framework. This initiative is essentially a pragmatic response to reality: Argentines are already among the most active cryptocurrency adopters globally, due to prolonged periods of high inflation, sharp currency volatility, and reliance on assets like dollar stablecoins to protect their savings.

The main driving force behind the institutionalization of crypto transactions is the bringing of the huge trading activity already generated in the shadow financial system into the regulated banking system. For years, ordinary Argentines have relied on Bitcoin and stablecoins to cope with the continued depreciation of the peso and circumvent foreign exchange restrictions. If major Argentine banks enter the crypto field, it is bound to significantly change the local financial ecosystem. The market is currently dominated by independent virtual asset service providers (VASPs) and crypto-native exchanges. Once banks enter the market with their large customer base and capital strength, they may quickly occupy a dominant position, forming strong competitive pressure on existing crypto companies.