Sebastian Sinclair

Next month, Buenos Aires will begin rolling out a blockchain-based and open-source digital identity protocol, QuarkID, in an effort to streamline citizen access to public services.



Buenos Aires citizens will be able to download the protocol’s native wallet to claim essential personal documents such as birth and marriage certificates, according to a statement on Wednesday.



The move is being touted as a “first” in Latin America, in collaboration with on-chain digital identity solutions firm Extrimian and <a href="https://blockworks.co/tag/matter-labs">Matter Labs</a>, the company behind Ethereum <a href="https://blockworks.co/tag/layer-2-2">layer-2</a> blockchain <a href="https://blockworks.co/tag/zksync">zkSync Era</a>.



QuarkID’s service intends to operate on the principle of self-sovereignty, allowing individuals complete control over their personal data. While documentation will initially be limited, the Buenos Aires government is planning a phased introduction of various official credentials.



Starting in November, citizens will be able to access proof of income and academic attendance certificates — key documents for benefits claims — within their digital wallets.&nbsp;



For the initial rollout, Buenos Aires citizens will need to complete the existing biometric know-your-customer procedures for identity verification to create a QuarkID wallet.



The full roadmap for QuarkID, set to be released by year-end, aims to extend the service to over 2.5 million users by expanding the list of available credentials, per the statement.



Diego Fernandez, Secretary of Innovation of the Buenos Aires City Government, described the initiative as a digital trust framework serving as a &#8220;public good.&#8221;



&#8220;With this development, Buenos Aires becomes the first city in Latin America and one of the first in the world to integrate and promote this new technology,&#8221; he said.



Built atop Matter Labs&#8217; tech stack, the QuarkID wallet takes advantage of zkSync Era&#8217;s blockchain framework for consolidated document storage. ZkSync Era serves as the settlement layer for the QuarkID platform, ensuring the proper ownership of each stored document.&nbsp;



<h2 class="wp-block-heading">Adoption incoming?</h2>



Building on prior efforts since 2022, the Secretariat of Innovation and Digital Transformation in Buenos Aires has been working with Extrimian and other tech companies, including IOV Labs, OScity and Xcapit, as well as the local community.&nbsp;



Together, they are aiming to advance the development decentralized digital identity, seeking to evolve the current paradigm of e-government services across Latin America.



The region itself is fast becoming a <a href="https://blockworks.co/news/latin-america-growing-crypto-hotbed">hotbed</a> for blockchain use case adoption, demonstrating a willingness to employ censorship-resistant technologies for official government business and <a href="https://www.axios.com/2023/09/07/chile-pinochet-uruguay-dicators-documents-online">record keeping</a>.



Citizens across the region are also increasingly warming to the idea of transacting using crypto, ever since <a href="https://blockworks.co/tag/el-salvador">El Salvador</a> became the first nation in the world to adopt bitcoin (<a href="https://blockworks.co/price/btc">BTC</a>) as an official form of currency, alongside the US dollar, in 2021.



A <a href="https://blockworks.co/news/74-of-latin-americans-prefer-businesses-that-accept-crypto-report">Ripple survey</a> last year found that 74% of Latin Americans are more likely to transact with businesses that accept crypto, compared with just 41% of Europeans. A separate survey by <a href="https://mastercardcontentexchange.com/news/latin-america/en/newsroom/press-releases/pr-en/2022/june/latin-america-s-crypto-conquest-is-driven-by-consumers-needs/">Mastercard</a> in June of that year found more than half of Latin Americans reported having already paid for goods and services using digital assets.



Chainalysis’ latest figures from its <a href="https://www.chainalysis.com/blog/2023-global-crypto-adoption-index/">Global Crypto Adoption Index</a> show Brazil, Mexico and Argentina rank within the top 20 countries globally, besting the likes of Japan and Bangladesh.



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Buenos Aires government ID, coming to Ethereum via zkSync

James Cirrone

On Tuesday, ConsenSys published a survey in partnership with YouGov, focusing on crypto and Web3. The survey findings suggest a contrast between countries with developed economies and those with emerging economies.



The <a href="https://consensys.io/insight-report/web3-and-crypto-global-survey-2023">survey</a> polled over 15,000 people aged 18 to 65 in late April through May of this year. The respondents were also spread out among 15 different nations across Africa, the Americas, Asia and Europe.&nbsp;



A healthy supermajority, 92%, were aware of crypto, but that’s where the similarities ended.&nbsp;



Respondents from developing nations were generally more optimistic on crypto, while developed nations were decidedly more skeptical.&nbsp;



Nigerians were quite keen on owning crypto as a store of value, with 65% of Nigerians feeling this way.&nbsp;



For crypto investors in the US, Germany and the UK, the reasons for owning digital currencies were a bit different.&nbsp;



Americans, Germans and Brits all said one of their top reasons for investing in crypto was because they were “curious” and had a desire to educate themselves on the industry through “experimenting,” a ConsenSys spokesperson told Blockworks.



And 56% of Argentinians were motivated to own crypto for the same reason. They reported feeling that their “local currency is too unstable.” The Argentine peso has reached over 114% inflation, <a href="https://www.nytimes.com/2023/06/19/world/americas/argentina-inflation-peso-restaurants.html">according</a> to the New York Times.&nbsp;



This is something Circle CEO Jeremy Allaire expanded on in a recent Bloomberg <a href="https://www.youtube.com/watch?v=mhvcWogKhTQ">interview</a>, telling the outlet that he sees “enormous demand for digital dollars in emerging markets.”



Allaire was speaking on the news about Circle <a href="https://www.circle.com/en/pressroom/circle-singapore-obtained-major-payment-institution-license">obtaining</a> a license to offer its stablecoin services in Singapore. He noted that Asia has the most demand for such services, which could partially explain why the survey found that respondents from Asian nations were among the most likely to invest in crypto over the next 12 months.



Respondents were also asked which three concepts they most closely associated with crypto. With twelve possible answers, 38% said crypto either makes them think of “the future of money,” an “alternative to the traditional financial ecosystem,” or “the future of digital ownership.”



Broken down further by nationality, 58% of Nigerians, 50% of South Africans, and 44% of Mexicans believe to a certain extent that crypto is the future of money.&nbsp;



Among the Germans and Brits who were polled, less than 20% of them thought the same.&nbsp;



Similarly with NFTs, which is a way <a href="https://blockworks.co/news/how-to-buy-an-nft">some people are trying to create value and get compensated on the internet</a>, developing nations such as Nigeria, South Africa and Vietnam are most familiar with the concept of NFTs.&nbsp;



The most stark comparison on <a href="https://blockworks.co/news/75-percent-crypto-holders-own-nfts">NFTs</a> comes between British and Vietnamese respondents. UK residents were not likely to have owned an NFT, with 76% of them never having bought one. Only 24% of Vietnamese residents reported never having owned an NFT.



However, there was one common thread throughout the survey. Nigeria is by far and away the most bullish on crypto, despite the fact that <a href="https://blockworks.co/news/nigeria-tokenized-securities-crypto">crypto trading is severely limited in the country</a>.



A whopping 70% of Nigerian respondents correctly guessed the definition of a blockchain, which ConsenSys defined as “a secure, decentralized and transparent digital ledger that records and verifies transactions.” Only 36% of Americans and 30% of British residents cracked the right definition.



Also, nearly 80% of Nigerians said they understand what crypto is, with only 1 in 3 people having the same level of understanding in Indonesia and Japan. 



That tracks with the fact that Nigerians have the highest level of crypto ownership, according to the survey. They blow the next highest owners out of the water, which are South Koreans and South Africans. 



Nigeria is also one of the few countries with an active CBDC program, and <a href="https://blockworks.co/news/cbdc-results-may-vary">its citizens haven’t been very receptive to the economic change</a>.



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Attitudes on crypto are geographically divided, ConsenSys survey finds

Shalini Nagarajan

Binance has opened up fiat ramps in Argentina, where the inflation rate has surged above 100% for the first time in three decades.



Local users can now load their <a href="https://blockworks.co/tag/binance">Binance</a> wallets with Argentinian pesos and trade a small selection of cryptocurrencies via the app: bitcoin, ether, BNB and EOS, as well as dollar-pegged stablecoins BUSD and tether (USDT).



Binance so far only had limited operations in <a href="https://blockworks.co/tag/argentina">Argentina</a> and doesn’t yet offer peso pairs on its crypto exchange.



Due to <a href="https://www.bbc.com/news/world-latin-america-64960385">high inflation</a>, prices for goods and services across the country <a href="https://www.reuters.com/world/americas/argentines-struggle-shadow-100-inflation-2023-03-14/">reportedly</a> keep fluctuating almost every week, meaning peso-denominated crypto price quotes are likely to change frequently.



<figure class="wp-block-embed is-type-wp-embed is-provider-flourish wp-block-embed-flourish"><div class="wp-block-embed__wrapper">
<iframe class="wp-embedded-content" sandbox="allow-scripts" security="restricted" title="Interactive or visual content" src="https://flo.uri.sh/visualisation/13321717/embed#?secret=3mvI0XLhrd" data-secret="3mvI0XLhrd" frameborder="0" scrolling="no" height="575" width="700"></iframe>
</div><figcaption class="wp-element-caption">The Argentine peso is down 70% in the past three years | Chart by David Canellis</figcaption></figure>



Binance’s wallet also supports dozens of international currencies, including the Turkish lira, Venezuelan bolivar and Afghan afghani.



Dollar-pegged stablecoins have proven useful in economies suffering from severe currency devaluation. But crypto purchased with Argentine pesos (ARS) seems to come with a steep price tag. Binance’s wallet currently sells <a href="https://blockworks.co/price/btc">BTC</a> for 11 million ARS ($52,000) — nearly double the spot price on Binance’s US platform.&nbsp;



Peso-holders will spend 749,000 ARS ($3,546) for ETH, while US users will pay only $1,899. BNB and EOS have the same price differences, as do USDT and BUSD, which go for $1.85 each.



When asked about the difference, a Binance spokesperson told Blockworks that within Argentina itself, there are different exchange rates than the “official” figures shown by the likes of OANDA.



Argentine markets don’t use the official figures, they said. Instead, they use <a href="https://datatopics.worldbank.org/world-development-indicators/stories/accounting-for-parallel-exchange-rates-in-world-bank-classifications-of-countries-by-income-level.html">parallel</a> market rates: “In the specific case of Argentina, when exchanges calculate prices, the stock exchange dollar is used as a reference.”&nbsp;



Nigeria sees similar disparities between the official exchange rates and international bitcoin prices. There’s no realistic arbitrage opportunity for regular traders (they would first need access to US dollar markets at the official rate), so the price difference <a href="https://www.mariblock.com/fact-check-bitcoin-is-not-trading-at-a-60-premium-in-nigeria/">shouldn’t</a> exactly be considered a “premium.”



In any case, Maximiliano Hinz, an Argentina-based Binance director for the Latin American region, told <a href="https://www.reuters.com/markets/currencies/crypto-exchange-binance-expands-argentina-2023-04-04/">Reuters</a> that the move was prompted by public demand and noted that Argentina is a key market for the company.



<h2 class="wp-block-heading">Binance under fire</h2>



Binance <a href="https://blockworks.co/news/binance-and-mastercard-to-bring-streamlined-crypto-payments-to-argentina">launched</a> a crypto prepaid card in partnership with Mastercard in Argentina last year, enabling users to make purchases and pay bills using crypto.&nbsp;



Younger people in the country view crypto as a way to bolster their savings after decades of losing trust in the government. Argentina recorded the 13th highest rate of adoption in the world in 2022, according to <a href="https://blog.chainalysis.com/reports/2022-global-crypto-adoption-index/">Chainalysis</a>.



“For a long time, Argentina has positioned itself as an important crypto market. People have always been very interested, there have been very good projects, and this has allowed the increase in adoption. Today, the crypto world brings solutions to people&#8217;s daily lives,” Binance’s Hinz <a href="https://www.binance.com/es-AR/blog/community/binance-junto-a-los-empresarios-en-la-argentina-5812115635170426124">said</a> at a recent event.&nbsp;



<a href="https://blockworks.co/news/bitcoin-and-ether-are-commodities-says-cftc-in-binance-lawsuit">Binance is currently faced with litigation</a> from the CFTC, which alleges that the exchange broke trading and derivatives rules.&nbsp;



CEO Changpeng Zhao, who has an estimated net worth of <a href="https://www.bloomberg.com/billionaires/">$30 billion</a>, has pushed back against the allegations, <a href="https://www.binance.com/en/blog/from-cz/czs-response-to-the-cftc-complaint-2408916493005890282">saying</a> the complaint contained an “incomplete recitation of facts” and that the exchange doesn’t agree with the characterization of the issues outlined.



Earlier this year, BUSD issuer Paxos began unwinding its relationship with Binance after receiving an SEC Wells notice over the dollar-pegged stablecoin.



Now, it’s on offer to Argentina.



David Canellis contributed reporting.



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Binance Opens Argentina Fiat On-ramps as Inflation Hits 100%

Ornella Hernandez

Argentina’s FIFA World Cup win in Qatar celebration continues in the metaverse.&nbsp;



The country’s national football association, the Argentine Football Association (AFA), announced a partnership with the Upland metaverse platform on Thursday.



The official licensing agreement will see the AFA expand fan engagement for Argentina’s Professional Football League (LPF). The goal is to connect fans with “players they admire” and offer exclusive in-game video footage ownership, according to a statement.&nbsp;&nbsp;



This promise of fan engagement has become a widely used refrain when it comes to professional sports sponsorships in the metaverse, but its true potential has yet to be proven.&nbsp;



This deal represents the first presence of Argentine soccer in the metaverse, according to the AFA, and Upland said it&#8217;s the first time it has offered exclusive ownership of in-game video to fans.



Upland was chosen by FIFA itself to launch a multi-year partnership and enable soccer fans to collect, trade and own FIFA NFTs and World Cup highlights prior to the start of the tournament. 195,000 bundles of NFT trading cards were sold out, which added up to 800,000 NFTs, Upland told Blockworks.



<h3 class="wp-block-heading">Finding Upland on the virtual land map</h3>



Something that sets Upland apart from other blockchain-based metaverse platforms such as The Sandbox or The Decentraland is its real world geography. Users face an actual map of the world on their screens, and the platform is linked to real cities and countries in which users can buy and mint virtual property with fiat or crypto.



The platform, which is <a href="https://bloks.io/account/playuplandme">running</a> on the <a href="https://blockworks.co/price/eos">EOS</a> mainnet, will allow fan’s properties to be customized with club-specific outdoor decor, Upland founder Dirk Lueth told Blockworks.



<blockquote class="wp-block-quote">
“We&#8217;ll be opening the city of Buenos Aires, which is a great coincidence because we promised in the context of our FIFA partnership that we would launch the World Cup winner&#8217;s capital as the first capital in Upland,” he said.&nbsp;
</blockquote>



The true user base numbers for various metaverse platforms, such as The Sandbox and Decentraland, remains relatively small when compared to video games like <a href="https://blockworks.co/news/ftc-fined-fortnite-metaverse-up-next" target="_blank" rel="noreferrer noopener">Fortnite</a> or gaming platform Roblox.



In Upland’s case, a <a href="https://upxland.me/properties/overview" target="_blank" rel="noreferrer noopener">third-party data aggregator</a> reports about 4 million total properties, of which about 2.8 million are listed as “owned.” Lueth claimed that Upland has 300,000 landowners.



It’s the largest dapp on the struggling EOS blockchain, <a href="https://dappradar.com/rankings/protocol/eos" target="_blank" rel="noreferrer noopener">according to DappRadar</a>, which reports the number of <a href="https://dappradar.com/eos/games/upland" target="_blank" rel="noreferrer noopener">unique active wallets</a> over the past 30 days at about 139,000.



Various football clubs from Birmingham City, Liverpool FC, AC Milan to FC Barcelona and Juventus have all launched their own NFT collections in the past couple of years.&nbsp;&nbsp;



While Portugal captain Cristiano Ronaldo inked an exclusive NFT deal with Binance crypto exchange, Argentina&#8217;s team captain, Lionel Messi, already has launched two NFT collections on the Ethernity NFT marketplace. His latest, commemorating his World Cup achievements throughout the years, <a href="https://blockworks.co/news/world-cup-fan-tokens-nfts-see-heavy-volume-after-argentine-victory" target="_blank" rel="noreferrer noopener">saw major resales</a> post-victory in Qatar.&nbsp;



The Argentine Professional Football League joins other professional sports organizations in attempts to generate a new source of income, leveraging Web3 technology.&nbsp;



Other crypto companies have tried to reach the throngs of soccer fans ahead of the World Cup including crypto exchanges Binance, Crypto.com, OKX and the Algorand blockchain who also partnered with FIFA.



Fan token exchange Socios was another platform that saw major activity for participating teams in the 2022 World Cup, demonstrating that the power of fandom can outweigh concerns over market conditions.



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Upland Scores Argentina Football Deal for EOS-based Metaverse

Argentina became the soccer world champion after beating France in the 2022 FIFA World Cup final in Qatar on Sunday.



Immediately after the win, the Argentine Football Association (ARG) fan token spiked momentarily from $4.01 to a high of $5.02 within the hour before a steady almost hourly decline to its current price of under $3.00 in the past 24 hours.&nbsp;



ARG’s 24-hour trading volume peaked at $40 million, as per token tracking site <a href="https://www.fanmarketcap.com/" target="_blank" rel="noreferrer noopener">FanMarketCap</a>. 



Runner-up France does not have a country fan token, tIn addition to post-World Cup fan token activity, Argentina-related NFTs have also seen a pump since the win.and now seven-time Golden Ball award recipient Lionel Messi has played for PSG since 2021 on a two-year contract. 



And Messi’s PSG teammate, Kylian Mbappe, forward for the French national team, also won the Golden Boot award after scoring a hat trick for France in the final match.&nbsp;



PSG’s president Nasser Al-Khelaifi is the chairman of the investment group that owns the soccer club — Qatar Sports Investments, a subsidiary of Qatar&#8217;s sovereign wealth fund.



During the World Cup, the <a href="https://blockworks.co/news/saudi-world-cup-win-shows-argentina-fan-token-the-red-card" target="_blank" rel="noreferrer noopener">ARG token also saw major fluctuations</a> when Argentina had its only loss against Saudi Arabia.



<h3 class="wp-block-heading">What are these Fan Tokens?</h3>



The ARG and PSG fan tokes are issued via Chiliz’s Socios platform, and reside on Chiliz’s permissioned sidechain, forked from Ethereum, per the Chiliz <a href="https://www.chiliz.com/en/chiliz-faq/" target="_blank" rel="noreferrer noopener">FAQ</a>.



While fan tokens may serve a more speculative purpose, those traded through the Socios platform offer holders access to merchandise and ticket promotions, as well as the chance to vote on club changes.



The tokens are not available and do not trade on public Ethereum.



Messi NFTs



In addition to post-World Cup fan token activity, Argentina-related NFTs have also seen a pump since the win. 



<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="430" src="https://blockworks-co.imgix.net/wp-content/uploads/2022/12/Lionel-Messi_-The-King-Piece-NFTs-seven-day-activity-on-OpenSea-1-1024x430.jpg" alt="" class="wp-image-42268" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2022/12/Lionel-Messi_-The-King-Piece-NFTs-seven-day-activity-on-OpenSea-1-1024x430.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2022/12/Lionel-Messi_-The-King-Piece-NFTs-seven-day-activity-on-OpenSea-1-1024x430.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2022/12/Lionel-Messi_-The-King-Piece-NFTs-seven-day-activity-on-OpenSea-1-1024x430.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2022/12/Lionel-Messi_-The-King-Piece-NFTs-seven-day-activity-on-OpenSea-1-1024x430.jpg?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2022/12/Lionel-Messi_-The-King-Piece-NFTs-seven-day-activity-on-OpenSea-1-1024x430.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2022/12/Lionel-Messi_-The-King-Piece-NFTs-seven-day-activity-on-OpenSea-1-1024x430.jpg?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2022/12/Lionel-Messi_-The-King-Piece-NFTs-seven-day-activity-on-OpenSea-1-1024x430.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2022/12/Lionel-Messi_-The-King-Piece-NFTs-seven-day-activity-on-OpenSea-1-1024x430.jpg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2022/12/Lionel-Messi_-The-King-Piece-NFTs-seven-day-activity-on-OpenSea-1-1024x430.jpg?w=50 50w, https://blockworks-co.imgix.net/wp-content/uploads/2022/12/Lionel-Messi_-The-King-Piece-NFTs-seven-day-activity-on-OpenSea-1-1024x430.jpg?w=1980 1980w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Lionel Messi: The King Piece NFTs seven-day activity on OpenSea | Source: OpenSea</figcaption></figure>



In particular, <a href="https://blockworks.co/news/messi-ronaldo-world-cup-nfts" target="_blank" rel="noreferrer noopener">Messi’s second official NFT collection</a> with NFT marketplace Ethernity, the Messi Time Machine Collection, has seen major resale volume in the past 24 hours. According to Ethernity, traffic to its marketplace tripled yesterday.



The ‘Lionel Messi: The King Piece’ NFT reached nearly 40 ETH in trading volume over the past seven days, according to OpenSea. This marks a 4,292% increase since the week prior.



Marketplace users seemed to scoop up these NFTs the night before the game which caused a volume spike of over 28 ETH in less than 24 hours. A 13% increase in trading volume can be seen in the last 24 hours since the win.



Ethernity even hosted a fantasy sports-style bracket challenge for community members with for the most accurate sets of predictions. The top three participants will win from a prize pool of 1000 ERN, Ethernity&#8217;s native token, while others will be able to claim a physical sports jersey.



Also trending on OpenSea is a fan-developed CryptoPunks-inspired collection called The Argentinians Official. It logged 127 ETH in trading volume activity on the night before the World Cup final after days of zero activity. It has since declined by 46%.



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World Cup Fan Tokens, NFTs See Heavy Volume After Argentine Victory

The 2022 FIFA World Cup in Qatar is causing the value of national soccer team fan tokens to fluctuate wildly, as events on the field have effects off it.&nbsp;



Immediately following Argentina’s 1-2 loss to Saudi Arabia on Tuesday, the ARG fan token’s price fell from $7.21 at the start of the game to $4.96 at the end of it — a 31% decline. At the time of writing, the token has <a href="https://www.fanmarketcap.com/tokens/argentine-football-association-fan-token" target="_blank" rel="noreferrer noopener">climbed</a> slightly to $5.36, according to CoinGecko.



Argentina’s loss came as a shock to fans, given that the team counted on a 36-match unbeaten streak since 2019, and it was one match short of beating Italy’s 37-match unbeaten run.



Anticipation of the game propelled ARG to the number one spot by 24-hour volume on fan token tracking site <a href="https://www.fanmarketcap.com/" target="_blank" rel="noreferrer noopener">FanMarketCap</a>.&nbsp;



<figure class="wp-block-embed is-type-wp-embed is-provider-flourish wp-block-embed-flourish"><div class="wp-block-embed__wrapper">
<iframe class="wp-embedded-content" sandbox="allow-scripts" security="restricted" src="https://flo.uri.sh/visualisation/11912458/embed#?secret=PfTpQQLdrn" data-secret="PfTpQQLdrn" frameborder="0" scrolling="no" height="575" width="700"></iframe>
</div></figure>



Fan tokens represent a tiny fraction of the overall crypto market’s total value. ARG’s market capitalization is only $21.6 million, compared to ether at $138 billion or bitcoin’s $311 billion market cap.&nbsp;



Only four teams participating in the World Cup this year — Argentina, Portugal, Spain and Brazil — offer fan tokens through partnerships with the Socios platform. Token holders can benefit from merchandise and ticket promotions, as well as voting about a team’s kit change.



Fan tokens generally have an average of around 20,000 holders each, and about 16,700 people currently hold the Argentina fan token.



The Chiliz token (CHZ), which powers the Socios fan token ecosystem, has also collapsed by about 30% since the World Cup started. Portugal and Brazil have yet to play.



As for the winner of the match, <a href="https://blockworks.co/news/saudis-bidding-meme-undermined-by-crypto-investor-survey" target="_blank" rel="noreferrer noopener">Saudi Arabia</a>, it saw support from NFT investors. A collection titled &#8220;The Saudis&#8221;, featuring artwork derivative of CryptoPunks, saw trading volumes and sales soar over 2,300% in the last six hours, according to OpenSea. The collection is not tied to the Saudi Arabian government or to the country’s football team.



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Saudi World Cup Win Shows Argentina Fan Token the Red Card

<div id="highlights-block_62fbc37545dc1" class="highlights">
 <ul>
 <li>The city will be a driving force behind blockchain adoption, but private companies will serve as partners in node deployment</li>
 <li>Buenos Aires announced in April that citizens would be able to pay taxes using cryptocurrencies</li>
 </ul>
 
</div>



Buenos Aires will become one of the first public entities in the world to help run Ethereum’s network infrastructure, a city official announced during Argentina’s ETHLatam conference last week.



Private companies will contract with the city to deploy validator <a href="https://ethereum.org/en/staking/" target="_blank" rel="noreferrer noopener">nodes</a> — computers running Ethereum client software — which are slated to be installed next year.&nbsp;



The validators, which are responsible for storing data, processing transactions and adding new blocks to the blockchain, will become part of the <a href="https://cms.blockworks.co/proof-of-work-vs-proof-of-stake-whats-the-difference/" target="_blank" rel="noreferrer noopener">proof-of-stake</a> network consensus system being implemented in conjunction with <a href="https://cms.blockworks.co/the-investors-guide-to-the-ethereum-merge/" target="_blank" rel="noreferrer noopener">the Merge</a>, expected to occur in mid-September.



The city’s secretary of innovation and digital transformation, Diego Fernández, didn’t disclose how many nodes would be deployed during last week’s announcement, but each validator requires a stake of 32 ether to operate (currently valued at about $60,300).



The city council’s investment will be conducted within the regulatory sandbox created in early 2021 by the Buenos Aires legislative branch. The city’s data centers will host the nodes.



Fernández, a crypto enthusiast, told <a href="https://www.coindesk.com/policy/2022/08/11/buenos-aires-city-to-deploy-ethereum-validator-nodes-in-2023/" target="_blank" rel="noreferrer noopener">Coindesk</a> that the city’s decision “has exploratory and regulatory purposes” that will help “develop adaptable [crypto] regulation.”



Once regarded as a crypto-friendly country, Argentina’s stance on digital assets has since shifted, although perhaps involuntarily — the International Monetary Fund (IMF) in May reportedly pressured the country’s central bank to ban unregulated crypto transactions in traditional banks.



However, the country’s capital has continued to look favorably upon the nascent space. Buenos Aires Mayor Horacio Rodríguez Larreta in April announced that local citizens would be able to pay taxes using cryptocurrencies. He later elaborated, explaining that the process would be handled by crypto companies, as the local government itself can only accept Argentine pesos. 



Argentines rank among the world’s top adopters of digital assets, in part due to persistently high inflation in the South American country, alongside the yearslong devaluation of the local peso. Locals, in turn, have started investing in crypto to protect their savings from losing purchasing power.



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Buenos Aires Will Run Ethereum Validators Starting in 2023

Bessie Liu

<div id="highlights-block_62ec025d124aa" class="highlights">
 <ul>
 <li>Latin America has one of the highest rates of cryptocurrency adoptions in the world</li>
 <li>&#8220;Payments is one of the first and most obvious use cases for crypto,” the general director of Binance in Latin America said</li>
 </ul>
 
</div>



Centralized crypto exchange Binance and Mastercard are teaming up to offer a new <a href="https://www.prnewswire.com/news-releases/binance-and-mastercard-launch-prepaid-card-in-argentina-to-bridge-cryptocurrencies-and-everyday-purchases-301599811.html" target="_blank" rel="noreferrer noopener">prepaid crypto card</a> in Argentina, with the aim of making crypto payments more accessible in the region.



The card allows Binance users with a valid identification card to use some cryptocurrencies, including bitcoin and Binance’s BNB token, for day-to-day transactions and earn up to 8% crypto cashback on eligible purchases.



Argentina will be the first Latin American country to have access to the product, which is currently in its beta phase. 



&#8220;Payments is one of the first and most obvious use cases for crypto, yet adoption has a lot of room to grow,” Maximiliano Hinz, general director of Binance in Latin America, <a href="https://www.prnewswire.com/news-releases/binance-and-mastercard-launch-prepaid-card-in-argentina-to-bridge-cryptocurrencies-and-everyday-purchases-301599811.html" target="_blank" rel="noreferrer noopener">said in a statement</a>. 



<blockquote class="wp-block-quote">“We believe the Binance Card is a significant step in encouraging wider crypto use and global adoption and now it is available for users from Argentina,” Hinz said.</blockquote>



The Latin American region has seen high rates of crypto adoption, with recent surveys showing that more than <a href="https://cms.blockworks.co/74-of-latin-americans-prefer-businesses-that-accept-crypto-report/" target="_blank" rel="noreferrer noopener">74% of the population</a> prefers businesses that accept cryptocurrency payments. 



This will not be the first partnership international payments platform Mastercard has made with cryptocurrency companies to expand its footprint in Argentina. The company last year partnered with Argentina- and Peru-based cryptocurrency exchange and cross-border payments platform Buenbit on a prepaid card in cooperation with BKR.



Its competitor, Visa has also been eyeing the region. Recently, partnering up with Lemon, an Argentinian bitcoin exchange to release cards offering a 2% bitcoin cash back option for every transaction.



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Binance and Mastercard To Bring Streamlined Crypto Payments to Argentina

<div id="highlights-block_6282bf96cbaae" class="highlights">
 <ul>
 <li>Crypto companies&#8217; latest deals are part of an effort to develop mainstream awareness of their brands internationally</li>
 <li>Binance, WhaleFin, Tezos, OKX and Crypto.com are a few of the companies that are investing in sponsorships all over the world</li>
 </ul>
 
</div>



Crypto markets may be down, but trading platforms are still pouring truckloads of money into sport sponsorships.



Last week, Binance, the world’s largest crypto exchange, <a href="https://www.binance.com/en/blog/markets/binance-is-the-new-exclusive-crypto-sponsor-of-brasileir%C3%A3o-421499824684903828" target="_blank" rel="noreferrer noopener">announced</a> that it would be the exclusive crypto sponsor of Brasileirão, the leading soccer tournament in Brazil, for the next three years. As with other markets, Binance Launchpad will be used to develop NFTs and fan tokens, digital assets that offer interactivity and benefits for holders.



The sponsorship is “important to help expand crypto adoption and generate positive impact for our users, the crypto and blockchain community and society as a whole in Brazil,” Changpeng “CZ” Zhao, Binance CEO, said in a statement.



In Brazil, the company is already a sponsor of other major clubs such as Santos FC.



Crypto companies hope to reach more retail investors through soccer clubs with huge global reach via broadcast deals and social media accounts numbering in the millions of followers.



Binance’s investment in Brazil included an acquisition, pending approval from the central bank, of Sim;paul Investimentos, a Brazilian exchange that already has regulatory authorization in the country. Recently, Brazil’s Senate approved a draft bill to create rules for crypto in the country.



Binance, earlier this year, <a href="https://www.binance.com/es-AR/blog/community/la-asociaci%C3%B3n-del-f%C3%BAtbol-argentino-presenta-a-binance-como-nuevo-main-sponsor-global-y-fan-token-oficial-421499824684903342" target="_blank" rel="noreferrer noopener">became the main global sponsor</a> of the men&#8217;s national soccer team in Argentina, where soccer passion is as big as it is in Brazil. The five-year deal marks the first time that the exchange sponsored a national team. Argentina will play in FIFA’s World Cup later this year in Qatar.



In Portugal, another country known for its love of soccer, the 2022 championship winner FC Porto, also counts Binance as a sponsor. The terms of the deal were not disclosed. Binance and the renowned soccer club jointly launched a token called FC Porto Fan Token, which lost 74% of its value in the last month, going from $14 to just $1.40.



In Italy, Binance sponsors Lazio, which ranks in fifth place in Serie A, the Italian soccer championship.



And Binance is not alone. WhaleFin, a trading platform for digital assets, will pay 20 million pounds to sponsor Chelsea Football Club’s shirt sleeve in the next season, according to the <a href="https://www.ft.com/content/9f0c4272-a1ff-47cf-8bd6-4c90f1cd2843" target="_blank" rel="noreferrer noopener">Financial Times</a>. Previously, another Premier League team, Manchester United, struck a sponsorship deal with blockchain platform Tezos. Manchester City, which won the British championship this year, has a global sponsorship deal with crypto exchange OKX.



Although soccer is an obvious option for sponsorship deals in Europe and South America, other sports are in the running for crypto dollars. Cryptocurrency exchange Crypto.com, which counts <a href="https://cms.blockworks.co/crypto-com-cmo-on-how-company-went-from-app-to-global-brand/" target="_blank" rel="noreferrer noopener">actor Matt Damon</a> among its hired marketing guns, became Formula 1’s global partner in 2021 in a deal worth $100 million, according to <a href="https://www.cnbc.com/2021/06/29/formula-1-strikes-100-million-cryptocurrency-sponsorship.html" target="_blank" rel="noreferrer noopener">CNBC</a>, and more recently launched a nine-year deal Miami Grand Prix’s as official title partner.



Later this year, Crypto.com will also be one of the many <a href="https://cms.blockworks.co/crypto-com-adds-fifa-world-cup-sponsorship-to-sports-marketing-strategy/" target="_blank" rel="noreferrer noopener">World Cup official sponsors</a>, alongside companies such as Qatar Airways, Adidas, Coca-Cola, Wanda, Hyundai and Visa.



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Latest Crypto Sponsorships: Binance Goes To Brazil, WhaleFin Partners With Chelsea FC

<div id="highlights-block_627903e37bb15" class="highlights">
 <ul>
 <li>Unregulated crypto trading is a risk to investors and the financial system, Central Bank says</li>
 <li>Pressures from the IMF, after a recent debt restructuring deal, may have played a role in this decision</li>
 </ul>
 
</div>



Argentina’s central bank has decided to ban unregulated crypto transactions in traditional banks. Once regarded as a crypto-friendly country, the pendulum has swung in Argentina after the International Monetary Fund (IMF) reportedly pressured policymakers. This announcement comes just days after Argentina’s biggest private bank, Banco Galicia, <a href="https://cms.blockworks.co/argentinas-biggest-private-bank-adds-crypto-trading/" target="_blank" rel="noreferrer noopener">decided to add crypto trading</a>.



“Financial institutions can’t transact or facilitate transactions to their clients in digital assets trading, including crypto assets and those whose income is determined by crypto’s value fluctuation,” the Central Bank of the Republic of Argentina said in a <a href="https://www.bcra.gob.ar/Noticias/BCRA-desalienta-oferta-criptoactivos-sistema-financiero.asp" target="_blank" rel="noreferrer noopener">statement published</a> Thursday. This represents an actual ban, because there are currently no regulated digital assets in the country. 



The regulator said its actions are designed “to mitigate risks associated with” crypto, both for investors and “the whole financial system.” Argentina’s central bank reckons that banks should focus their efforts on financing the real economy instead of digital assets. Moreover, it implies that these transactions would involve unregulated entities established outside Argentina, which could breach current laws. 



The action follows an alert in May 2021, during which authorities highlighted the risks of cryptoassets and advised investors to be “prudent” in their investment decisions. These risks include “high volatility, cyberattacks, money laundering and terrorism financing,” as well as infringements on transnational currency exchange operations, the central bank said. 



Last week, Banco Galicia and digital bank Brubank SAU revealed that they were offering digital assets trading services, including mainstream cryptocurrencies such as bitcoin, ether and the USDC stablecoin. Until now, Argentines had to use centralized exchanges through wallets or trade directly through over the counter exchanges.



In 2017, Argentina received a $44 billion bailout from the IMF — the largest-ever relief package. The institution recently approved a debt restructuring deal and, in tandem, both parties agreed that Argentina would “discourage the use of cryptocurrencies with a view to preventing money laundering, informality and disintermediation,” according to a letter of intent sent in March by politicians to the IMF’s managing director, Kristalina Georgieva. The stated goal was to “further safeguard financial stability.”&nbsp;



The country has been grappling with high inflation and the devaluation of its currency, the peso, for years now. Argentina’s monthly inflation rate rose to 6.7% in March alone, surpassing forecasts, <a href="https://www.indec.gob.ar/uploads/informesdeprensa/ipc_04_22AD79164254.pdf" target="_blank" rel="noreferrer noopener">according to the country’s latest data</a>. The annualized inflation rate hit 55.1% that month, reaching the highest level in two decades due to increases in food and energy prices.



Locals, in turn, have started investing in crypto to protect their savings from shrinking purchasing power, and employers have been allowed to pay up to 20% of an employee’s salary in cryptocurrencies. However, the latest decision taken by the central bank may reverse the trend towards mainstream crypto adoption in the country.



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Argentina’s Central Bank Bans Crypto Trading

<div id="highlights-block_62713125a2ba4" class="highlights">
 <ul>
 <li>Banco Galicia’s move targets young clients and highlights a global trend in crypto adoption by traditional banks</li>
 <li>Argentines are increasingly using cryptocurrency to protect their savings against rampant inflation</li>
 </ul>
 
</div>



Banco Galicia, Argentina’s biggest private bank by market cap, has added crypto trading to its investment platform, the bank confirmed Monday. Argentines rank among the world’s top adopters of digital assets in part due to inflation in the South American country.



The move targets young clients, who survey data shows want streamlined access to crypto via traditional banking avenues, the bank’s senior product manager Nicolas de Giovanni told <a href="https://www.bloomberg.com/news/articles/2022-05-02/two-argentine-banks-allow-customers-to-buy-cryptocurrencies" target="_blank" rel="noreferrer noopener">Bloomberg</a>.&nbsp;



Clients can buy digital assets on the same platform they use to buy stocks or bonds through the bank’s partnership with crypto wallet <a href="https://www.lirium.com/" target="_blank" rel="noreferrer noopener">Lirium</a>. Unlike with other exchanges, however, users can’t withdraw or send their cryptocurrency.



The bank confirmed it was launching crypto trading in the home banking app after Argentines spotted the new function on Monday. The feature will initially only be available to clients who receive their income via direct deposit.



Banco Galicia, which is listed on the Nasdaq and the Buenos Aires stock exchange, is the first major bank in the country to provide such services.



But it won’t be the only one: Digital bank Brubank SAU will also offer crypto trading services, including bitcoin, ether and USDC, starting this week as well.&nbsp;



Until now, Argentines had to use centralized exchanges through wallets or trade directly through over-the-counter exchanges.



Argentina has been grappling with high inflation and the devaluation of its currency, the peso, for years now. In 2017 it received a $44 billion bailout from the International Monetary Fund, the institution’s largest-ever relief package. Locals in turn have started investing in crypto to protect their savings from shrinking purchasing power.



Banco Galicia joins a growing number of traditional banks worldwide moving into digital assets. Last month, Commerzbank, Germany’s fourth-largest bank, confirmed it <a href="https://cms.blockworks.co/german-banking-giants-move-into-crypto-highlights-growing-trend-in-europe/" target="_blank" rel="noreferrer noopener">wants to offer digital assets</a> custody and exchange services to clients, focusing initially on institutional customers.



In Argentina, as well as other Latin American countries such as El Salvador, crypto adoption is becoming mainstream. Recently, Argentine <a href="https://cms.blockworks.co/argentina-moves-to-incubate-crypto-startups-under-regulatory-eye/" target="_blank" rel="noreferrer noopener">authorities announced an innovation hub</a> to boost fintech and crypto startups in a regulated environment. Employers can also pay up to 20% of an employee’s salary in cryptocurrencies.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



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Argentina’s Biggest Private Bank Adds Crypto Trading

Casey Wagner

<div id="highlights-block_6261796c485c0" class="highlights">
 <ul>
 <li>The hub will match institutions with regulators to establish compliance and credibility</li>
 <li>The news comes as payments in crypto in Argentina continue to increase as workers look to sidestep rampant inflation in the country’s native currency</li>
 </ul>
 
</div>



Argentina has rolled out a so-called “innovation hub” to bolster fintech and cryptocurrency startups in a regulated manner.



The idea is to match private institutions with Argentinean regulators early on to establish compliance and credibility, the country’s National Securities Commission, known locally as the CNV, said this week.



The regulator said the hub is designed to “encourage and promote the interaction of innovative entities that operate or intend to operate in the Argentine capital market.”



It also is intended to “reduce the time-to-market of innovative services and products and allow compliance with the Argentine regulatory framework,” the financial watchdog added.



Companies looking to get involved in the hub must apply. Criteria include proof that the business will use emerging technologies, clear use cases for the company’s product and a demonstrated need for regulatory clarity or guidance for the company.



Selected businesses will be required to attend workshops and regularly meet with regulators for “support sessions,” the CNV said.



The launch comes as Latin American countries continue to take a closer look at crypto and blockchain technology, on the heels of <a href="https://cms.blockworks.co/el-salvador-went-all-in-on-bitcoin-will-other-countries-follow/" target="_blank" rel="noreferrer noopener">El Salvador</a> tapping bitcoin as its sovereign currency.



Crypto exchanges in Argentina have grown in recent months as inflation ramps up and businesses look to take advantage of existing local regulatory loopholes. Argentina permits employees to be paid up to 20% in bitcoin or other cryptocurrencies — which a good number of workers take advantage of in an effort to sidestep rampant inflation in the country’s native peso.&nbsp;



Between July and December 2021, 52% of payment withdrawals in cryptocurrency through payroll company <a href="https://f.hubspotusercontent30.net/hubfs/19498232/State%20of%20hiring%20report%202021/State%20of%20Hiring%20Report%202021.pdf" target="_blank" rel="noreferrer noopener">Deel</a> came from workers in Latin America. 



“There’s a lot of noise, there’s a lot of attention around crypto, and there are several exchanges across the region, and particularly in Mexico, Colombia, Brazil [and] Argentina,” said Anabel Perez, CEO and co-founder of NovoPayment, following El Salvador’s bitcoin move. “But, I think, we’re in the early stage of seeing the impact of crypto in Latin America economies.”



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Argentina Moves to Incubate Crypto Startups Under Regulatory Eye

Ben Strack

<div id="highlights-block_61dc74a1aad2d" class="highlights">
 <ul>
 <li>Blockchain.com wants to be one of the biggest financial institutions in Latin America, Chief Business Officer Lane Kasselman said</li>
 <li>A large traditional bank buying Blockchain.com or other large crypto firms is unlikely in the current regulatory environment, the executive argued</li>
 </ul>
 
</div>



Blockchain.com made several notable acquisitions last year and is looking at more such opportunities to expand across several emerging markets.&nbsp;



The <a href="http://blockchain.com" target="_blank" rel="noreferrer noopener">London-based crypto firm</a>, which offers users the ability to buy, sell and trade crypto, has 80 million wallets across 200 countries. Its $300 million investment round in March gave the company a $5.2 billion valuation.



Blockchain.com is focused on building its footprint across regions such as Latin America, Africa and Eastern Europe, Blockchain.com Chief Business Officer Lane Kasselman told Blockworks in an interview.&nbsp;&nbsp;



“We are looking at markets where the customers need crypto, because they’re much more sticky, they don’t react the same way to market volatility and they’re much more interested in a wide variety of products and services,” he explained.



Blockchain.com announced in November its acquisition of SeSocio, an Argentina-based crypto company that also has a presence in Brazil, Chile, Colombia, and Mexico. The addition of SeSocio’s 100 employees brought Blockchain.com’s global headcount to roughly 400.&nbsp;



While the acquisition made Blockchain.com the largest crypto company in the region, Kasselman said, it is now looking to become one of the biggest financial institutions in Latin America.



“Companies that try to parachute in and build their business in countries where they don’t have a significant staff presence often times stumble,” the chief business officer noted.



<blockquote class="wp-block-quote">“The real strategy is acquiring somebody who’s already one of the market leaders and working through them to really grow your business.”</blockquote>



Kasselman noted that there are more than 200 million unbanked individuals in Latin America, which he said is often due to unsafe or inaccessible banking systems. Crypto has helped solve that issue and has opened them up to a digital ecosystem.&nbsp;&nbsp;



“Maybe they’re looking for a safe store of value,” Kasselman said. “But they’re also looking for access to Netflix and Spotify, and so their crypto wallet or blockchain wallet becomes an onramp.”



The executive said that Blockchain.com is not currently focused on building its presence in India due to an uncertain regulatory environment in the country.&nbsp;&nbsp;&nbsp;



<h3 class="wp-block-heading">Product outlook for Blockchain.com</h3>



Kasselman noted that the first financial services accounts for some younger investors, such as recent college graduates, is a crypto wallet. He added that the demand for such customers, and others, is often around crypto offerings that mirror more traditional financial services.



The company launched margin trading on its exchange in October to allow users to access margin with up to five times leverage in the bitcoin-to-US dollar and ether-to-USD trading pairs in more than 150 countries. It has also set up a waiting list for debit cards, Kasselman said. 



Different markets have different needs, he added, noting that users in Latin America and Africa are more interested in seamless remittances to move value across borders, as well as less volatile tokens that may provide a safer store of value.



“Blockchain.com is less in the business of predicting what customers want and more in delivering to them exactly what they are asking for,” Kasselman explained.



<h3 class="wp-block-heading">Crypto M&amp;A more broadly</h3>



In addition to its purchase of SeSocio last year, Blockchain.com acquired artificial intelligence startup AiX last May to bolster its institutional business. The company also bought French consumer startup Storm Inc. and Magic Carpet, a machine learning and AI company, in October.&nbsp;



Mergers and acquisitions within the crypto sphere accelerated last year, a trend that <a href="https://cms.blockworks.co/what-could-crypto-ma-look-like-in-2022/" target="_blank" rel="noreferrer noopener">industry watchers have predicted</a> will continue in 2022. M&amp;A deals involving at least one company in the crypto sector totaled 169 in 2021, as of mid-December, compared to 59 deals in the year prior, according to data from M&amp;A advisory firm Architect Partners.&nbsp;



There is no shortage of ideas and teams within the crypto space, Kasselman explained, but many struggle to attract users.



<blockquote class="wp-block-quote">“Everyone wants to move fast in crypto, and it’s really hard to move fast unless you have access to a big customer account,” he said. “I think we’ll see a lot of rapid consolidation, especially if the market continues to be a little less hot.”</blockquote>



Bitcoin’s price was at about $41,300 at 1 p.m. ET, according to <a href="https://www.coingecko.com/en" target="_blank" rel="noreferrer noopener">CoinGecko</a>, a decrease of roughly 13% from seven days ago.&nbsp;



SkyBridge Capital Founder Anthony Scaramucci <a href="https://cms.blockworks.co/are-tradfi-and-crypto-set-for-an-ma-explosion/" target="_blank" rel="noreferrer noopener">previously said</a> he expects that a big bank frustrated by the growth of decentralized finance could buy a crypto firm such as Coinbase.&nbsp;



Though some banks have dabbled in crypto by offering clients indirect exposure to the asset class, Kasselman noted that such a transaction, or one involving a large traditional firm buying Blockchain.com, is unlikely in the current regulatory environment.



“I do think we are at the beginning of what is a two-year cycle of a permanent regulatory framework being established across the US and the EU, so it’ll look very different in a couple of years,” Kasselman said. “But right now it’s very hard for those sort of old, stoic, publicly traded companies to think about entering a space…that doesn’t really have clear rules.”