The first signing of a professional footballer to a club in Argentina has reportedly been finalized using cryptocurrencies, which made headlines in national news.

Specifically, the transfer of midfielder Giuliano Galoppo from Banfield’s Athletic Club to Sao Paulo Futebol Clube was reportedly conducted with the assistance of USD Coin (USDC), crossing the benchmark of $6 million and can reach $8 million, depending on the volatile exchange rate of the Argentine peso. 

The transfer was reportedly finalized via a newly forged alliance between the Mexican crypto exchange Bitso and the clubs.

“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,” Thales Freitas, Bitso’s director in Brazil, reportedly remarked regarding the development. 

The transfer reportedly took place during a difficult economic scenario for Argentinian sports clubs. The reported exchange gap between pesos and United States dollars is on the rise, having an impact on the possibility of football players getting signed by teams from across the globe and inducing them to renegotiate their contracts to adjust their salaries to the volatile USD price.

The nation’s unstable economic scene has reportedly been the driving factor for a major adoption of cryptocurrencies, particularly stablecoins. The tendency toward stablecoins reportedly climbed up following the unexpected resignation of Argentina’s economy minister in early July.

Crypto adoption has reportedly also been witnessing a rise in sports by players and clubs in the nation. Nonetheless, this would mark the unprecedented case of clubs being able to facilitate cryptocurrencies as a medium of payment for global transfers, to regain a competitive edge in the market for their players.

Regardless of its novelty, the cryptocurrency transaction involving Galoppo will still be placed under the associated regulatory scopes. Per Bloomberg, Argentine central bank sources clarified that Galoppo’s transfer is an export operation. 

Consequently, it will be mandatory for Banfield to carry out liquidation for their USDC into local currency, pesos, using the official exchange market.