Banfield, a soccer team based in Buenos Aires, has sold one of its best players to Brazilian giants 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 8 million USDC for the transfer of a football player
Following this agreement, Galoppo became the first football player sold in exchange for cryptocurrencies in Argentina. The deal was facilitated by Latin American-based cryptocurrency exchange Bitso.
Argentinian demand for crypto assets is growing in various sectors, including sports. A report of Bloomberg said Banfield sold the 23-year-old midfielder to one of Brazil’s top soccer teams, Sao Paulo, for $8 million in USDC.
USDC is a token whose value is pegged to the US dollar at a ratio of 1:1. The stablecoin works like digital cash, where users can hold an equivalent dollar value, which facilitates cross-border transactions. USDC is currently the second largest stablecoin by market cap.
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Local regulators have not received the crypto deal for the soccer player well. The Central Bank of the Argentine Republic (BCRA) said Banfield should settle the USDC stablecoin in the Single Free Exchange Market (MULC). The club will not hold any stablecoins, but will convert them into Argentinian pesos.
Additionally, the club will be denied access to MULC for three months for its cryptocurrency activities and for violating local crypto laws. The start date of the ban is after Galoppo’s transfer is finalized.
However, this is not the first time that Sao Paulo has shown its support for digital assets. The football club has partnered with Bitso to allow fans to buy match tickets using cryptocurrencies like Bitcoin and Shiba Inu. Bitso is also the financial sponsor of the football club for the next three years.
Rise in demand for crypto in Argentina
The economic climate in Argentina is currently in crisis. The country faces a wide range of problems, including political tensions, soaring inflation and the highest unemployment rate in years.
Argentina’s economic situation worsened in July after the resignation of Economy Minister Martin Guzman. The financial crisis has been ranked as the main reason why people turn their attention to cryptocurrencies and stablecoins.
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