Report: Ignoring central bank's warning, Argentina first bitcoin exchange moves forward

Earlier this week, Argentina’s central bank (BCRA) issed a stern warning about the risks of virtual currencies. Although this is a fairly typical attitude towards bitcoin and other cryptocurrencies from central banks across the world, in Argentina the context is different. Argentina’s peso has seen 100% inflation in the last year, and the massive and painful 5,000% inflation of 1989 is still very fresh on the minds of many in the country.

As a result, the BCRA’s claims that bitcoin is volatile and less credible because it isn’t backed by a wise and powerful central authority has struck many in the country as little more than unintentional humor.

Part of the reason for the BCRA’s warning is the rapidly growing popularity of bitcoin in the country. Although the U.S. dollar is by far the favored reserve currency in Argentina, bitcoin’s ability to allow online transactions without the need for a bank account has helped spur interest in the country. Argentinian startups like BitPagos have found levels of support generally unheard of Latin American countries.

One major step forward for bitcoin in Argentina is the much-anticipated opening of Bitex.la, the country’s first homegrown bitcoin and litecoin exchange. As reported by Cointelegraph, the company has expanded its operations dramatically in recent weeks, shrugging off the BCRA warning.

The exchange’s arrival will more than likely be greeted with considerable rejoicing among Argentinean’s ardent Bitcoin supporters, for whom this week’s bank warning will feel even more toothless than its statement’s wording signifies internationally.”

Although Bitex.la is currently online and seems to be accepting trades, its still unclear if full account access has been activated for users in Argentina.