A soon-to-debut Bitcoin futures index has received approval of the Argentine securities regulator. Bitcoin futures index will reportedly launch in May on the Matba Rofex exchange.
The exchange promotes as the first regulated Bitcoin futures in Latin America. Argentina’s securities regulator, the Comisión Nacional del Valor (CNV), approved the futures contract as part of a strategic innovation agenda in the country.
In particular, this movement began in the first quarter of 2022 and is focused on promoting public-private collaboration for new products in the capital market.
Argentine exchange to launch a regulated Bitcoin futures index
The Bitcoin futures contract will depend on the BTC price on various Argentine platforms that offer BTC/ARS trading pairs. Your investors will settle business transactions in Argentina’s national currency, Pesos, through bank transfers.
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Exchanges that offer Bitcoin futures contracts must have a valid agreement with a payment service provider duly registered with the Central Bank of Argentina. That is the only condition for financial regulators to approve payment transactions.
The new Bitcoin futures index would provide safe BTC exposure to qualified investors in a transparent and regulated environment. Likewise, the CNV ordered the Matba Rofex stock exchange to implement alerts that warn investors about the associated risks.
Argentines turn to Bitcoin to hedge against inflation
Inflation rates in Argentina have reached a overwhelmingly high level. residents have migrated to crypto to cover its effects. Bitcoin peer-to-peer trading volumes reach a new all-time high as more people explore BTC investment and payment options.
This development led the country’s Ministry of Economy to propose a new bill that encourages citizens to declare their cryptocurrencies. That will allow authorities to incentivize cryptocurrency holdings with tax benefits.
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The crypto-friendly atmosphere in Argentina has attracted major exchanges planning to expand their operations. Bitcoin futures contract approval came a few days after Binance Announced its expansion strategy in Argentina.
B.Finance even announced its new offering to allow Argentinian users to deposit fiat money into a Binance wallet and buy cryptocurrencies 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. This suggestion drew reactions from a number of industry participants, including Raoul Pal, founder and CEO of Global Macro Investor.
Comrade opposite Brain Armstrong’s idea of BTC as a national currency, touting its high volatility. According to Pal, an asset that falls 65% during a recession and increases 10 times in an uptrend is not ideal for a national fiat.
Featured image from Pixabay and graphic from Tradingview.com
