Argentine Football Club Transfers Players Using Crypto USDC

Argentine Football Club Transfers Players Using Crypto USDC

Amid the absence of global regulation for the use of crypto assets, Argentine football club Atletico Banfield has just made a player transfer using USDC worth USD 6 million - USD 8 million. This transaction was made in the context of the transfer of midfielder Giuliano Galoppo to Sao Paulo club Futebol Clube from Brazil. In the deal, the two clubs teamed up with Mexican crypto exchange Bitso to facilitate its transactions.

"We are very proud to work with these two clubs for the historic signing of Sao paulo with all the security, transparency and flexibility that cryptoeconomics has to offer," said Thales Freitas, Director of Bitso in brazil.

This was forced to be done due to the uncertain condition of the Argentine economy and the peso money that continued to fluctuate against the US dollar.

The economic conditions that continue to decline have made it difficult for clubs to sell their players to international teams.

Please note, until June 2022 inflation in Argentina has touched 64% and is projected to continue to increase to the level of 75% in the fourth quarter of this year.

Currency Gap In Argentina

At the time of writing, the official price set by the local government was 131 pesos per dollar. However, the figure is considered an artificial value because people and companies are only willing to exchange dollars for 330 pesos.

Because the Argentine government imposed many restrictions, it was difficult for local people to exchange pesos for foreign currency legally.

As a result, there is a lot of currency black market popping up on the streets in downtown Buenos Aires, causing a peso currency gap in the country.

When the government officially set the exchange rate at 130 pesos per dollar, on the black market the government regulated rate stood at 324 pesos per dollar.

although the government continues to say that this condition does not affect their real economy, the presence of exchange rates on the black market has affected economic expectations and widened the gap between market citizens and official prices.