First Cryptocurrency Transaction In History of Argentine Soccer

The first cryptocurrency transaction in the history of Argentine soccer angered the nation’s national bank, which prohibited Banfield from running the MULC for the following 90 days.

Giuliano Galoppo, a star player for the Buenos Aires-based soccer team Banfield, was sent to São Paulo, a Brazilian powerhouse. It’s interesting that the latter paid the transfer fee in cryptocurrency rather than a traditional currency, giving the Argentinian club USDC worth about $8 million, thus making this the first cryptocurrency transaction in the history of Argentine Soccer.

Galoppo was thereafter the first soccer player in Argentina to be traded for digital assets, with Bitso (a well-known cryptocurrency exchange in Latin America) acting as the transaction’s middleman.

Soccer and Bitcoin Strengthen the Bond

The state of Argentina’s economy might use some improvement. One of the biggest nations in South America has struggled for decades with a variety of problems, including political unrest, raging inflation, and unemployment.

When Martin Guzman, the Minister of Economy, left his position last month, the crisis grew worse. It’s interesting to see that the residents’ attention has shifted to digital currencies, specifically stablecoins, as a result of the monetary upheaval.

Other industries, including the sports industry, appear to be seeing an increase in interest in these financial solutions. According to Bloomberg, Club Atlético Banfield, an excellent soccer club in Argentina, sold their 23-year-old midfielder Giuliano Galoppo to São Paulo, one of Brazil’s most successful clubs, for $8 million USDC.

The token is a form of virtual money that Circle, an American provider of financial and payment services, has created. Its value is fixed at one dollar for every token. As a stablecoin, USDC functions like digital cash, allowing users to hold an asset with the same value as the dollar and send and receive it instantly around the world.

However, it is important to note that domestic regulators did not like the deal. Banfield was required to settle the USDC it had received in the Single Free Exchange Market, per the Central Bank of the Argentine Republic (BCRA) (MULC). In other words, the club will have to exchange its stablecoins for Argentine pesos rather than holding them.

Additionally, starting from the day Galoppo’s move was completed, the team will not have access to the MULC for three months for engaging in cryptocurrency operations and breaking domestic regulations.

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