The introduction of cryptocurrencies has reached Argentine soccer. On Wednesday, July 27, the transfer of footballer Giuliano Galoppo to a Brazilian club was announced, a transaction carried out with “USD Coin” (USDC). According to the local press, the transaction amounted to about US$8 million.
“USDC” is a stable cryptocurrency with a value pegged to the US dollar. Users can convert 1 USDC coin into US$1 at any time, own crypto, and are not exposed to the significant volatility of Bitcoin, Ether, and Co.
Specifically, the transfer of Galoppo from Club Atlético Banfield to São Paulo Futebol Clube was made, a purchase that reinforces the narrative of cryptocurrencies as a means of payment.
“This is a historic moment for Bitso, São Paulo FC, and South American soccer. Our main mission is to contribute to further modernization, digitalization and inclusion, and this is another important step in that direction,” said Thales Freitas, general manager of the global cryptocurrency exchange in Brazil.
The transfer of the player financed by “USDC” could be a way for these teams to avoid the crisis in Argentina, where the exchange rate has surged in recent weeks.
It is in the knowledge that the foreign currency received by sports teams must be settled at the official exchange rate, which is much lower than the rate registered in the parallel market, also known as the “blue dollar”.
When a stablecoin transfer is made, teams do not have to settle it, and if they do, they do not have to settle it at the official rate but can opt for the market rate.
For example, recently, it was reported that River Plate, one of Argentina’s most important soccer teams, could not transfer a player precisely because of the exchange rate.
According to the Argentine medium “Ámbito”, the arrival of Colombian soccer player Miguel Borja to the Red and Whites was affected by the decision of the country’s Central Bank, which prohibits the transfer of dollars abroad at the official price, thus preventing the payment of professional athletes.
With information from Latina Press