Singapore-based crypto and blockchain company Huobi Group has launched a cryptocurrency exchange in Argentina and plans to add support for a fiat-to-crypto channel later this month, according to Reuters.
Huobi Argentina users can currently only purchase digital currencies with Argentine pesos (ARS) using Huobi’s OTC service, but the exchange is planning to establish a trust channel to allow the direct exchange of ARS for crypto at some point in October.
This will allow users to purchase cryptocurrencies using credit cards, bank transfers, and through local digital payment providers.
Huobi is growing in Argentina
The news of Huobi launching a fully-regulated fiat-to-crypto exchange in Argentina should come as no surprise.
The Argentine government has recently stepped up its efforts to prevent the flight of capital from the country amid a growing financial crisis.
Earlier this month, the Central Bank of Argentina issued a statement announcing limited access to US dollars for both citizens and businesses. Individuals seeking to buy dollars will have a limit of $10,000 per month.
Carlos Banfi, chief executive officer at Huobi Argentina, stated he has high expectations for the new company offerings.
He said: “Argentina is South America’s most promising market for blockchain development.”
Huobi was seemingly targeting the Argentine market as early as March this year. Huobi CEO Leon Li met with major players from Argentina to discuss how blockchain technology could help the country’s economic development.
Due to the recent poor performance of the ARS against the US dollar, Argentinians could find some room to breathe by converting some of their savings into Bitcoin, which historically has performed quite well against traditional fiat currencies or even precious metals like gold.
With widespread disbelief in the government and central bank growing in the country, Huobi’s entry may offer the refuge many Argentine citizens need.
Binance to follow soon?
— CZ Binance (@cz_binance) March 6, 2019
The announcement of the launch of Huobi Argentina came months after Binance CEO Changpeng ‘CZ’ Zhao hinted that Binance is planning to launch a branch of its exchange in Argentina as well.
Moreover, Binance Labs, a spin-off project which aims to implement blockchain technology across multiple sectors, has just partnered with the Argentinian federal government to invest in blockchain projects.
Around the world, consumers aren’t waiting around for governments to repair their economies, choosing instead to embrace digital currencies as a practical way to participate in the economy.
For instance, in Venezuela, where spiraling inflation rates are even more pronounced, consumers turned to Bitcoin to buy and sell the goods and services necessary to facilitate their daily lives.
With multiple exchanges offering a fiat-to-crypto gateway in local currencies and governments and central banks seemingly unable to control growing inflation, people will most likely chose to adopt the currency with the most security and long-term stability: Bitcoin.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.