Argentina has taken a large step towards embracing cryptocurrency innovation with the launch of its first ever bitcoin futures contract. The contract could help establish a value for BTC in the country amid economic instability.
Argentina has launched its first-ever bitcoin futures contract through Matba Rofex, the country’s largest agricultural futures and options exchange.
The futures contract will be settled in Argentine pesos and is initially only available to qualified institutional investors like funds and companies.
Tracking BTC/ARS Prices
The contract represents one-tenth of a bitcoin and will track the price of BTC quoted by several Argentinian exchanges that offer BTC/ARS trading pairs.
Argentina has struggled with economic instability and high inflation in recent years, prompting many residents to turn to bitcoin and cryptocurrencies as a store of value. The potential for gains from bitcoin’s recent surge has also attracted speculators.
Bitcoin futures allow investors to gain exposure to bitcoin’s price movements with only a fraction of the capital required to buy bitcoin itself. They have helped bring more institutional interest to the crypto space.
Waiting for Retail Investors
It is unclear when the futures contract will be expanded to retail investors in Argentina. But as bitcoin futures trading grows, it will help establish a market price for bitcoin in the country.
The National Securities Commission of Argentina also plans to regulate the cryptocurrency industry to provide a legal framework for crypto companies. The Ministry of Economy is also preparing measures that would require cryptocurrency holders to declare their holdings.
Brazil May Follow Suit
With Argentina launching its first bitcoin futures contract, eyes are now on Brazil to potentially do the same. B3, the Brazilian Stock Exchange, has said it plans to launch bitcoin and ether futures contracts but has postponed the launch to the second half of 2023.
BTC/USD has been on an uptrend in recent months, reaching $31,600 on Thursday, beating a key resistance level. Increased futures trading could boost bitcoin’s price and liquidity in Argentina and the broader Latin American market.
In summary, Argentina’s launch of bitcoin futures represents a significant step towards embracing cryptocurrency innovation. The contract has the potential to help establish bitcoin’s price in the country and attract more institutional interest. However, regulatory clarity is still needed to fully unlock crypto’s potential in Argentina.