Argentine Football Club Sells Player to Sao Paulo in Crypto

Crypto is a promising way to escape the Argentine economy, but the current government isn't making the transition easy.

By
Mark Jurgens
on
July 30, 2022
Category:
DeFi

A Historic Transfer for Latin America

Banfield, a beloved neighborhood football club from the Argentine Primera División, sold their star midfielder to Sao Paulo, one of the biggest teams on the continent, solely in crypto. 

“The Drill” transferred Giuliano Galoppo to Brazil for 8 million USD Coins ($USDC) in agreement with crypto exchange Bitso.

“This is a historic moment for South American football. Our primary mission is to contribute toward more modernization and inclusion, and this is another important step in that direction,” said Thales Freitas, CEO of Bitso Brazil. 

Now What?

Argentina’s economic crisis is far from ending. In fact, it seems as if it’s getting worse day by day. With annual inflation approaching three digits and the Peso losing most of its value against the dollar, citizens are looking for ways to cushion the fall.

The left-leaning government restricted access to U.S. dollars and other currencies to prevent the official rate from increasing. As a result, the black market dollar (305 $ARS) is trading at more than double the value of the official dollar (133 $ARS). 

The question remains whether the Argentine club can retain the cryptocurrency, which trades close to the black market value. The Argentine Central Bank told Bloomberg Linea that the club would have to liquidate the $USDC at the official rate. Nevertheless, there is no regulatory clarity yet, and Banfield might explore other options. 

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Mark Jurgens

Mark is an industrial engineer, born in Colombia and raised in Argentina, a place that is in deep need for the freedom crypto can offer the world. He is searching for projects that want to make a positive impact. Analytical and creative. Loves to travel around. Biggest holdings are Defichain, Ethereum and Solana.

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