By On November 8, 2019, Huobi Argentina, a subsidiary of crypto exchange Huobi Group, announced it plans to invest 100 million dollars to create a data centre.
The new facility will be focused on blockchain technology and will be one of a kind in terms of size and capacity in the local area.
Huobi Argentina had earlier reported that it plans to create a local team and a gateway to buy and sell crypto directly with the Argentine peso. The service, which should have gone live by October, will reportedly start operating by the end of November.
Carlos Banfi, the executive president of Huobi Argentina, confirmed that the enterprise would make this huge investment to improve the blockchain infrastructure in the country.
The current plans of the company are to set up a local team that can help in the creation of a fiat gateway, which can be used to convert the local fiat currency, the Argentine peso (ARG) to cryptocurrencies.
Argentina’s Inflation Spurs Crypto Growth
Argentina has been dealing with massive inflation for a long time now, which is almost as bad as Venezuela’s crisis in Latin America.
The government was not able to solve the inflation crisis, so a lot of individuals are trying to convert their money to other sources to avoid losing it.
In this context, the planned data center could be significant for people who want to hold their funds in digital form as inflation gets worse.
Argentina Imposes Strict Currency Controls
Argentina’s capital control measures could be another reason for the growing crypto interest in the country. The central bank recently put a cap on purchases for the second time to maintain exchange stability and protect reserves.
Argentinians are currently limited to dollar purchases of $200 per month, an abrupt cut from the earlier $10,000 per-month limit.
Following the rising interest in crypto, Binance has been considering the possibility of establishing a fiat-to-crypto exchange in the Latin American country.
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