Buenos Aires-based soccer team Banfield sold one of its best players (Giuliano Gallopo) to Brazilian giants So Paulo. Interestingly, the latter paid the transfer amount in cryptocurrencies instead of fiat currency, handing the Argentine club about $8 million USDC.
As a result, Gallopo became the first football player in Argentina to be sold in exchange for digital assets, while Bitso (a popular crypto platform in Latin America) mediated the deal.
Football and crypto deepen the relationship
Argentina’s economic situation is not in its best shape. One of the largest countries in South America has been facing a range of issues over the past decades, including political crises, galloping inflation and unemployment.
The crisis escalated last month when the economy minister – Martin Guzmán – resigned from his post. Interestingly, the monetary chaos became a reason for the locals to shift their attention towards digital currencies and more precisely stable coins.
Interest in such financial products is growing in other sectors including the sports sector. As reported by Bloomberg, Argentina’s elite soccer club – Club Atlético Banfield – sold their 23-year-old midfielder Giuliano Gallopo to one of Brazil’s most successful teams – So Paulo – for USDC $8 million.
The token is a digital currency issued by American financial services and payments company Circle, pegged 1:1 to the value of the US dollar. As a stablecoin, USDC acts like digital cash, enabling consumers to hold an asset of equivalent value to a greenback and transfer it seamlessly around the world.
However, it is worth noting that the domestic regulator was not happy with the deal. The Central Bank of the Republic of Argentina (BCRA) insisted that Banfield must settle USDC received in the Single Free Exchange Market (MULC). In other words, the club will not be able to hold onto its stablecoin, but will have to convert it to Argentine pesos.
Additionally, the team will lose access to MULC for three months starting from the date of completion of the transfer to Galloppo, for conducting cryptocurrency operations and violating domestic laws.
Sao Paulo’s love for crypto
The Brazilian football giant has already demonstrated its support for the digital asset universe. Two months ago, it partnered with Bitso to allow its fans to purchase match tickets in cryptocurrencies including Bitcoin (BTC) and Shiba Inu (SHIB). In addition to assisting So Paulo, the platform will also serve as its financial sponsor for the next three years.
The first proponent to buy tickets in crypto was Fabio Gloden Broome, who used BTC in the transaction. The club awarded him a special non-fungible token (NFT) to commemorate the historic move.
Featured image courtesy of Play Crazy Game
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