2 months ago 2 min read

Argentina Approves Innovative Bitcoin Futures Index, Upending Conventional Finance

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An announcement published recently on the official website of Argentina states that the country's securities authority has approved a futures index based on Bitcoin that will launch on the Matba Rofex exchange.

The Bitcoin futures contract, as reported by Bloomberg Law, will be the first regulated Bitcoin futures index in Latin America when it starts trading in May. This announcement is anticipated to be warmly reacted to.

The Bitcoin futures index was certified by the National Commission of Value (CNV), the nation's securities regulator, as a component of a strategic innovation agenda that went into effect in the first quarter of 2022. The innovation agenda seeks to establish a setting for public-private cooperation in order to develop innovative products for the capital market. The Bitcoin futures contract will be based on the BTC price given by several national companies that offer BTC/ARS trading pairings.

All transactions will be settled in Argentine pesos by bank transfer, and all trades will be settled in the national fiat currency. A legitimate contract with a company offering payment services that is registered with the Central Bank of the Argentine Republic is required for an exchange to provide these contracts. This action is anticipated to increase the country's usage of Bitcoin as a medium of exchange because it has been experiencing excessive inflation.

The CNV has also requested that the Matba Rofex exchange include alerts that warn investors of the dangers connected with such financial instruments. The regulated Bitcoin futures index would provide qualified investors with a safe opportunity to get BTC exposure in a transparent and controlled environment. The goal of this measure is to better inform investors and lower their chance of suffering losses.

Argentina is one of many countries that has recently adopted a pro-crypto position, with many individuals using Bitcoin to lessen the effects of excessive inflation. Peer-to-peer Bitcoin trade activity in the nation has also risen to unprecedented heights in the face of rising inflation. Recent legislation put up by the Ministry of Economy enticed people to disclose their cryptocurrency holdings by offering tax incentives.

Following Binance's announcement that it would be expanding to Argentina, the Bitcoin futures contract was just launched. Argentina is a key market for us, and we are excited to be expanding our presence there, said Changpeng Zhao, CEO of Binance. This move is expected to further boost the adoption of Bitcoin and other cryptocurrencies in the country and give investors more opportunities to invest in these assets.

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