The South American country, Argentina, saw soccer team Banfield sell their prominent player Giuliano Galoppo to Sao Paulo, one of the largest soccer teams in Brazil. What’s unique about it is that they become the first club to sign a player using crypto.
Yes, you heard it right!! Sao Paulo with the help of approximately $8 million worth of USDC, a US dollar-pegged stablecoin has signed the player from Argentinian team Banfield.
This transfer had taken place with the help of a collaboration with Bitso, one of the largest South American crypto exchanges.
At the moment this deal is a positive sign as it marks the first crypto signing of a soccer player.
Thales Freitas, Bitso’s director in Brazil stated, “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.”
However, Argentina is going through an economic crisis. The gap between pesos and dollars is widening and rising up. This might affect the possibility for football players to get signed by international teams and induce them to renegotiate their contracts to adjust their salaries to the volatile USD price.
Also Read: São Paulo FC to Accept Crypto for Ticket Payment Through Bitso
Banfield club would not be able to hold its stablecoin possession as they would be required to convert it into Argentinian pesos, as stated by the Central Bank of the Argentine Republic (BCRA) for Banfield to settle the received USDC in the Single Free Exchange Market (MULC).
Moreover, Banfield team will lose access to the MULC for three months, for conducting cryptocurrency operations and violating domestic laws.
