Argentinean soccer club welcomes first crypto signing amid economic downturn

Argentina’s economic restrictions have also extended to the sports industry, with the first signing of a local footballer using cryptocurrency making national headlines.

The transfer of midfielder Giuliano Garoppo from Banfield Athletic Club to Sao Paulo Futbol Club has been made in USD Coins (USDC) in excess of $6 million and up to $8 million, depending on the volatile exchange rate of the Argentine Peso. I was. according to to local sources. The transfer was made possible through a partnership with Mexican cryptocurrency exchange Bitso.

Bitso Brazil Director Thales Freitas said:

The transfer came in a difficult economic situation for the Argentine sports club.Reported exchange gap between peso and dollar maintained escalateinfluences the likelihood of football players signing with international teams, inducing them to renegotiate their contracts to adjust their salaries to match the volatile dollar price.

The country’s volatile economy has led to major adoption of cryptocurrencies, especially stablecoins. The trend towards stablecoins famously escalated after the shock resignation of Argentina’s economy minister earlier this month.

The practice of crypto adoption has also been replicated in sports by domestic players and clubs. It’s the first time I’ve been able to accept it.

Despite its novelty, cryptocurrency trading, including Galoppo, is still subject to regulation. According to Bloomberg, an Argentine central bank source said: clarified Garoppo’s transfer is an export business. As a result, Banfield will be forced to use the official exchange market to liquidate USDC into the local currency, the peso.

Meanwhile, it remains unclear how professional footballers chose to exchange USDC directly into the official exchange market while allowing clubs to resist central bank action.

Related: Blockchain, Cryptocurrencies Will Take The Sports Industry Beyond NFT Merchandise

A recent study conducted by Big Four accounting firm Deloitte revealed the potential of the cryptocurrency ecosystem in redefining revenue streams and fan engagement across the sports industry.

The report expects cryptocurrencies to bring connectivity around sports collectibles, ticket sales, betting and gaming. For example, non-fungible tokens (NFTs) allow the sports industry to introduce fractional ownership initiatives. This could encourage the reinvention of the ticket resale process.