Argentina’s securities regulator has announced that it has given the green light for a national Bitcoin futures index. Its launch is expected to take place as early as May and will be the first of its kind in South America.
Bitcoin futures in Argentina
Argentina’s securities regulator has approved the debut of the Bitcoin futures index on the Matba Rofex exchange. The BTC contract will begin trading in May, marking the first regulated Bitcoin futures index in Latin America. The decision is part of a strategic innovation agenda aimed at fostering public-private cooperation and creating new and creative products in the capital market.
The bitcoin futures contract will be based on the price of BTC, which will be provided by various providers of BTC/ARS trading pairs. All trades will be settled in Argentine peso, and investors will be required to make deposits only via bank transfer.
In order for the exchange to offer and use payment services in the country, it must have a valid contract with a provider of such a solution, registered with the Central Bank of the Argentine Republic. This is an important step for the development of the cryptocurrency market in Argentina and increasing investor confidence in this segment of the economy.
Bitcoin a cure for Argentina’s problems
The regulated Bitcoin futures index provides a safe way for qualified investors to gain exposure to BTC in a regulated environment. Nonetheless, the National Value Commission (CNV) has asked the Matba Rofex exchange to introduce alerts to warn investors of the risks associated with these financial instruments.
Argentina’s high inflation is causing many to turn to Bitcoin as a way to mitigate its effects. The result is that the domestic volume of Bitcoin trading has recently reached new highs.
In recent weeks, the Ministry of Economy has proposed a bill to encourage citizens to declare their holdings in cryptocurrencies and enjoy tax benefits for doing so. Argentina has adopted a pro-cryptocurrency stance in past years, resulting in crypto adoption nearly double that of neighboring countries.
The above announcement comes just a week after an announcement shared by the CEO of the Binance exchange, Changpeng Zhao. At the time, he was informed of the expansion that the entity he manages is going to carry out in this remote South American country. Both of these announcements are sure to boost Bitcoin adoption in that region of the world.