A soon-to-debut Bitcoin futures index has received approval from the securities regulator of Argentina. According to reports, the Bitcoin futures index will launch in May on the Matba Rofex exchange.
The exchange touts it as the first regulated Bitcoin futures in Latin America. The Argentinian securities regulator, the National Commission of Value (CNV), approved the futures contract as part of a strategic innovation agenda in the country.
Notably, this move started in Q1 of 2022 and focuses on fostering public-private collaboration for new products in the capital market.
Argentinian Exchange To Launch A Regulated Bitcoin Futures Index
The Bitcoin futures contract will depend on the BTC price on various Argentinian platforms offering BTC/ARS trading pairs. Its investors will settle trading transactions in Argentina’s national currency, Pesos, through bank transfers.
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Exchanges offering Bitcoin futures contracts must have a valid agreement with a duly registered payment services provider under the Central Bank of Argentina. That is the only condition for the financial regulators to approve the payment transactions.
The new Bitcoin futures index would provide safe BTC exposure to qualified investors in a transparent and regulated environment. Also, the CNV mandated the Matba Rofex exchange to implement alerts that warn investors of the associated risks.
Argentinians Resort To Bitcoin For Inflation Hedge
Inflation rates in Argentina have reached an overwhelmingly high level. Residents have migrated to crypto to hedge its effects. Bitcoin peer-to-peer trading volumes hit 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 motivates citizens to declare their crypto holdings. That will enable the authorities to incentivize the crypto holdings with tax benefits.
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The crypto-friendly atmosphere in Argentina has attracted top exchanges planning to expand their operation. The Bitcoin futures contract approval came a few days after Binance announced its expansion strategy in Argentina.
Binance even announced its new offering to allow Argentinian users to deposit fiat money into a Binance wallet and purchase cryptocurrency with their balance. With the recent developments, Argentina is moving closer to its prime time in crypto adoption.
Meanwhile, after Argentina and Brazil proposed a common currency, Coinbase CEO Brian Armstrong recommended BTC as a legal tender. This suggestion sparked reactions from several industry participants, including Raoul Pal, Founder and CEO of Global Macro Investor.
Pal opposed Brain Amstrong’s idea of BTC as a national currency, touting its high volatility. According to Pal, an asset that declines 65% during a downturn and rises 10x in an uptrend is not ideal for a national fiat.
Featured image from Pixabay and chart from Tradingview.com
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Eli brings an eclectic point of view to market analysis. He was previously a brokerage director and online trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX, whilst also a startup founder.