Cryptocurrency exchange Binance is looking to extend its reach on a global scale with the potential launch of a fiat-to-crypto platform in South America.
Binance CEO Changpeng Zhao has publicly hinted that Argentina might be the next destination for the platform to expand into. This comes after what looks like a fruitful negotiation with the Argentine government.
Argentina as the Focal Point
The cryptocurrency company has previously held meet-ups in Cordoba and Buenos Aires. After those were successful, it has now decided that Buenos Aires might become the regional hub for the Binance Labs Incubation Program in South America.
Ella Zhang of Binance Labs remarked:
Argentina is at the forefront of blockchain adoption and we’ve witnessed how it’s becoming home to some very passionate blockchain communities during our trip there.
In its collaboration with Binance, Argentina’s Ministry of Production and Labour will be investing in projects — matching any investment of up to $50,000 for any Argentine blockchain-related project. The Ministry has allegedly agreed to such investments for a four-year period.
Expansion to Everyone’s Benefit
Argentina is one of the “target” countries of the whole cryptocurrency movement, as its currency — the Peso — has always been in uncertain territory, with past cycles of hyperinflation and high volatility. The sentiment is mirrored in the increased buying activity of Bitcoin (BTC) observed on LocalBitcoins in South American countries during the past few months.
As such, activity around cryptocurrencies has been on the rise, with several blockchain projects coming out of the South American region. With this type of collaboration, the Argentine cryptocurrency scene is set to benefit from an accelerated development pace and attract additional investment capital.
On the other hand, Binance continues its expansion in well-targeted areas, with previous successful implementations of its platform in Malta, Uganda, Jersey, and Singapore. The cryptocurrency exchange continues to leverage its reputation to maintain and create new regulatory arbitrage opportunities for itself.
The opening of another fiat-to-crypto platform in an unexplored region aligns perfectly with the upcoming release of its decentralized exchange (DEX).
What do you think of Binance’s aggressive expansion? Will this partnership be a mutually-beneficial endeavor? Share your thoughts in the comments!
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