Leading crypto exchange from Chile, Buda.com, has commenced operations in Argentina. According to a report, initially, the exchange will support only three cryptocurrencies. These are Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH). Litecoin (LTC) will be added in the near future. The exchange has already started operations in three other countries including Peru, Columbia, and Chile and believes that Argentina has a high potential to become one of its most important markets in a year’s time, given the fast weakening currency in this emerging market.
The country is going through something of a currency crisis and spiraling inflation. However, the CEO and General Manager of Buda.com, Pablo Chavez, is of the opinion that despite the economic crisis, there are other factors that are encouraging for the growth of cryptocurrencies in Argentina. Presently, the exchange has around 80,000 clients and the number is expected to grow in the coming months.
Chavez Says CryptoCurrencies Will Have A Positive Effect On Argentina
Chavez said that virtual currencies can have a positive impact on the functioning of the Argentinean financial industry and will play a major role in giving access or reducing the uncertainty of users in the way they interact economically online. He further added that Argentina has been a vanguard of technology in the digital world as compared to other Latin American firms.
According to Chavez, ”In a country where inflation is extremely high, the value of other alternative currencies is greater. In the same way that you can hedge with gold at times of volatility, you can do the same with cryptocurrencies.” While theoretically this may be true, hedging against currency collapse with cryptocurrencies has not worked out as of yet, as bitcoin and others have crashed harder than the Argentine peso of late.
The introduction of Buda.com is expected to change the way digital currencies are traded as it only deals in globally recognized virtual currencies including Bitcoin and Ethereum.
Buda.com Facing Struggle With Chilean Banks
Meanwhile, the Chilean crypto exchange is fighting to re-open its accounts in local banks. Buda.com filed a lawsuit in April against 10 Chilean banks that closed its current accounts. The Court for the Defense of Free Competition (TDLC-Tribunal de Defensa de la Libre Competencia) ordered three banks to reopen the bank accounts recently. However, except Bancoestado, the two other banks, Scotiabank and Itau are yet to respond to the bank’s order.