Banfield, a soccer team based in Buenos Aires, has sold one of its top players to Brazil’s giant team, Sao Paulo. Sao Paulo paid for Guiliano Galoppo’s transfer in cryptocurrency instead of fiat currency. The transfer deal was worth $8 million in the USDC stablecoin.
Sao Paulo pays $8M USDC for soccer player transfer
Following this deal, Galoppo became the first soccer player sold in exchange for cryptocurrencies in Argentina. The deal was facilitated by the Bitso cryptocurrency exchange based in Latin America.
Argentina’s demand for crypto assets is growing in various sectors, including sports. A report from Bloomberg said Banfield had sold the 23-year-old midfielder to one of the best soccer teams in Brazil, Sao Paulo, for $8 million in USDC.
USDC is a token whose value is pegged to the US dollar on a 1:1 ratio. The stablecoin functions just like digital cash, where users can hold an equivalent greenback value, making cross-border transactions easier. USDC is currently the second-largest stablecoin by market capitalization.
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Local regulators did not receive the crypto deal for the soccer player well. The Central Bank of the Argentine Republic (BCRA) has said that Banfield should settle the USDC stablecoin in the Single Free Exchange Market (MULC). The club will not hold any stablecoin, but it will convert it to Argentinian pesos.
Moreover, the club will be denied access to the MULC for three months over its cryptocurrency activities and for violating the local crypto laws. The starting date for the ban is after Galoppo’s transfer is finalized.
However, this is not the first time Sao Paulo has shown its support for digital assets. The soccer club partnered with Bitso to allow fans to buy match tickets using cryptocurrencies like Bitcoin and Shiba Inu. Bitso is also the financial sponsor for the soccer club for the next three years.
Increased demand for crypto in Argentina
The economic climate in Argentina is currently in a crisis. The country is facing a wide range of issues, including political tensions, skyrocketing inflation, and the highest level of unemployment in years.
The Argentinian economic situation was made worse in July after the resignation of the Minister of Economy, Martin Guzman. The financial crisis has been classified as the top reason people are shifting their attention towards cryptocurrencies and stablecoins.
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