Argentina is considering a major shift in its approach to bitcoin. 

Argentina's central bank, the Banco Central de la República Argentina (BCRA), is reportedly drafting rules that would allow commercial banks to offer bitcoin and crypto trading and custody services to customers.

If approved, the new regulations could take effect as early as April 2026.

The potential change would reverse a ban put in place in May 2022. At that time, the BCRA prohibited banks from carrying out or facilitating operations involving digital assets, citing concerns about financial stability and money laundering. 

Since then, crypto activity in Argentina has largely taken place through informal channels or offshore exchanges.

Under the proposed framework, banks in Argentina could integrate crypto services directly into their apps and accounts, allowing for the trading and custody of select cryptocurrencies, including Bitcoin.

These operations would be conducted through separate legal units subject to higher capital, security, and liquidity requirements. Additionally, banks would be required to fully comply with know-your-customer (KYC) and anti-money-laundering (AML) standards, in alignment with regulations set by Argentina's National Securities Commission (CNV).

Bitcoin as a combat to inflation

Officials have signaled that the move is part of a broader effort to modernize financial services. Argentina has experienced years of high inflation and strict currency controls, pushing citizens to use cryptocurrencies as a way to preserve savings. 

According to Chainalysis, Argentina ranks 15th globally for active crypto wallet users, with around 10 million accounts. Between July 2023 and June 2024, the country processed an estimated $91 billion in on-chain transactions, more than 60% of which involved stablecoins.

Bitcoin-friendly president Javier Milei has influenced the policy shift since taking office in December 2023. 

He has advocated for broader financial freedom, including access to alternative currencies. Under his administration, the BCRA has signaled a willingness to rethink prior restrictions.

Local banks have shown interest in re-entering the crypto market. Some had already experimented with in-app trading tools before the 2022 ban. Now, they are preparing systems that could support regulated crypto services once approval is granted.