Singapore based Huobi group, the world’s third-largest cryptocurrency exchange has entered into Argentinian market with the launch of Huobi Argentina, native crypto exchange supported by Huobi cloud.
Huobi Argentina plans to rope in local Argentinian team to run the operations. The operations will opt fiat gateway for trading in the currency exchange, i.e., exchange of Argentinian Peso (ARS) to cryptocurrency.
Its further plans to operate with local language option, higher liquidity, lesser trading charges, and customer-friendly policies.
The launch of this local exchange was implemented after the shutdown of renminbi-to-bitcoin trading last year. Huobi Group will be investing US$1 billion to boost the project.
Fiat gateway for cryptocurrency exchange
As of now, Argentinian users could use Huobi’s over-the-counter service (OTC) service to purchase the cryptocurrencies, but the launch of fiat gateway (expected launch in mid-October) will ease the process.
By using Argentina Peso gateway, users would be able to purchase cryptocurrency with credit cards, wire transfers and through some local digital payment options like Mercadopago.
The company is supposed to use the Huobi cloud to tackle the technical glitches while developing the network of crypto trading in Argentina.
How the plans of Exchange rolled out?
The country’s economy is in dire condition with the steep increase in inflation in recent years. The central bank has failed to control the inflation and thus, the national currency ARS has crumbled to half of its value in the ongoing year.
Due to the growing volatility of ARS in recent years, there is growing distrust for banks among the general public. On the other hand, the Argentinian government has displayed its enthusiasm towards the adoption of cryptocurrency business for the economic development of the nation. To tap this opportunity, Huobi founder & CEO Leon Li met senior finance delegates of Argentina in March 2019. The roadmap of economic acceleration had been discussed then using blockchain technology.
Carlos Banfi, CEO, Huobi Argentina, said, “Argentina is South America’s most promising market for Blockchain development.”
He further added,
There already exists a general consensus to break from a reliance on the local currency and banks, and with Huobi’s entrance, into the market, it is a great opportunity to move the needle on blockchain and crypto adoption in Argentina.
Huobi Group, founded in 2013, is a Chinese blockchain company based in Singapore. It is operational across 130 countries with a turnover of more than US $1 trillion. It provides secure and reliable cryptocurrency trading and asset management services.