Argentina Moves to Let Banks Offer Crypto Trading and Custody

Argentina’s central bank is moving closer to one of its biggest financial shifts in years. The Banco Central de la República Argentina is now reviewing plans to let banks offer crypto trading and custody services. If approved, the move would end a long-standing ban that kept traditional banks out of the digital asset space. For years, banks were barred from touching crypto in any form. 

That wall may now come down. Instead of blocking digital assets, regulators want to supervise them. The focus is shifting from prohibition to oversight. This change also lines up with President Javier Milei’s market-friendly stance. His administration has backed financial reforms and shown sympathy toward crypto adoption. Now, regulators appear ready to follow through with real policy action.

Crypto Use Is Already a Daily Tool in Argentina

This policy rethink comes from economic reality, not hype. Argentines already use crypto at a massive scale. Inflation crushed the peso for years. Capital controls limited access to U.S. dollars. So people turned to Bitcoin and stablecoins to protect savings. Stablecoins, especially dollar-pegged tokens, now act like a digital lifeline. Many workers receive pay in crypto. Others save in it. Some even spend with it. The shadow crypto economy is no longer on the sidelines. It is part of daily life. 

Now the central bank wants this activity inside the formal system. If banks offer crypto services, users can trade through regulated accounts. That brings better consumer protection. It also strengthens KYC and AML controls. At the same time, it lets the government track flows that once moved off-grid. In short, crypto is already inside the economy. The law is just catching up.

Banks vs Exchanges as a New Battle Begins

If banks enter crypto, competition will shift fast. Today, local exchanges and global platforms dominate the market. They control most trading volume. They also set fees and custody standards. Banks bring something different. They already hold millions of customers. They manage risk for a living and also move capital at scale. Once banks step in, trading could become cheaper. Spreads could shrink. Trust could rise for users who had avoided exchanges before.

However, this shift will not be smooth. Banks must meet new capital and liquidity rules for volatile assets. Bitcoin and stablecoins behave nothing like loans or bonds. Risk models must change. Custody systems must be upgraded. Security standards must tighten. Still, the upside is clear. More competition usually means better services and for users, more choice means less friction.

What This Move Really Means for Crypto Adoption

This proposal does more than modernize banking. It confirms crypto’s role as financial infrastructure, not just a speculative tool. Argentina is not adding crypto for fun. It is doing it to survive inflation and currency stress. By allowing banks to trade and hold digital assets, regulators recognize that crypto already acts as a store of value for millions. They also accept that stablecoins now play a role in local payments and savings.

If approved, the change could reshape Latin America’s crypto map. Argentina would move from one of the strictest banking bans to one of the most regulated crypto markets in the region. In effect, for users, this means safer on-ramps. Furthermore, for banks, it means a new revenue stream, and for the crypto market, it sends a loud message: even under pressure, digital assets are pushing into the heart of traditional finance.