The National Securities Commission of Argentina (CNV) has authorized trading of bitcoin-based futures contracts linked to the Matba Rofex index, an Argentine exchange for futures markets and financial and agricultural assets.
The approval came at the request of Matba Rofex itself and was granted as part of a public-private collaborative project in which companies and regulators propose new digital products for the capital market in Argentina.
In practice, it is the first initiative of its kind in Latin America. It aims to attract investors who want to increase their exposure to crypto assets and have only been able to do so through regulated markets – these contracts have been traded on unregulated exchanges for at least nearly a decade.
Negotiations are expected to start in May, when Matba Rofex expects to have a valid agreement with a payment service provider (PSP) registered with the Central Bank of Argentina to enter into such deals. As an unsecured investment, investors must deposit at least 40 percent of the contract value as security.
The index is measured by the price of the cryptocurrency across the various platforms and exchanges that trade the Bitcoin Argentine Peso (BTC-ARS) pair. Contracts will be negotiated and settled in pesos, meaning the new tools will allow locals to participate in the price of the cryptocurrency without actually owning the asset.
It may sound strange for investors to see crypto assets as a solution to volatility. But it makes sense in a country with frequent currency crises and inflation exceeding 100 percent in 12 months.
Fabiane is a former Editor-in-Chief of LABS (Latin America Business Stories) and has over 15 years of experience reporting on business, finance, innovation and cities in Brazil. The latter recently brought her back to the classroom, taking her to a Masters in Urban Management from PUCPR. At TBR, she keeps an eye on economic policies, pioneering companies and people driving innovation in Latin America.
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