South American Football Team Purchase a Player in USDC
- Argentines are turning to crypto and stablecoins like USDC to combat their declining economy.
- This marks the first time clubs exchange players using cryptocurrency.
The recent surge in the dollar against other currencies like the naira and Argentinean pesos has further widened the gap between these economies. Argentina is suffering from some of its worst inflation in recent years and all aspects of the nation’s economy have been affected.
Two football teams in South America conducted the transfer of a player in USDC. According to local reports, the transfer of midfielder Giuliano Galoppo from Banfield’s Athletic Club to Sao Paulo Futebol Clube cost more than $6 million and may have reached $8 million, based on the changing rates. Both clubs completed the transfer with the help of the Mexican cryptocurrency exchange, Bitso.
This would be the first time clubs have exchanged players in cryptocurrency due to economic conditions. The Mexican exchange, Bitso, said it was thrilled to facilitate the transfer. Thales Freitas, Bitso’s director in Brazil, said,
We are very proud to work with these two clubs for this historical signing of Sao Paulo with all the safety, transparency and flexibility that the crypto economy has to offer.
The transfer took place in the midst of a challenging financial position for Argentine sports clubs. The inflation is hampering the chances of players from that region getting signed abroad due to the exchange rate difference between the peso and the dollar. As a result, many of these players are forced to sign new terms and adjust their financial demands.
Crypto Adoption Bound to Increase in Argentina
More than ever, many Argentines are clinging to cryptocurrencies as a hedge against their collapsing economy. The use of stablecoins like USDC in the country reportedly skyrocketed following the unexpected resignation of Argentina’s economy minister.
Football players and clubs in Argentina have also adopted the growing use of cryptocurrencies to gain a competitive advantage. However, Galoppo’s transfer will be subject to regulatory procedure since it is allegedly an export operation. So, Banfield will be compelled to use the official exchange market to convert their USDC into pesos.
However, Galoppo’s transfer will be subject to regulatory procedure since it is alleged to be an export operation. As a result, Banfield will be forced to convert their USDC into pesos through the official exchange market. Certain details of the transaction remain unclear, but it is sure to trigger other clubs into taking similar action.
Until the economy gets better, cryptocurrency usage is bound to increase. Most Argentines are reportedly searching for ways to earn dollars, and many are considering employment in the crypto industry.
Others are concerned about the reduced value of their wealth and have begun saving their funds in crypto as a remedy. Many experts believe that the global economic downturn will spur crypto adoption and reveal new applications for cryptocurrencies.
However, experts also expect authorities to hasten regulatory procedures in their region to curb any excesses in the market and bring the crypto industry under their control.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
