São Paulo paid $8 million in USDC for the Banfield Player

Buenos Aires-based football team Banfield sold one of their best players (Giuliano Galoppo) to Brazilian giants São Paulo. Interestingly, the latter paid the transfer sum in cryptocurrencies instead of fiat, handing USDC worth around $8 million to the Argentine club.

As a result, Galoppo became the first soccer player to be sold in exchange for digital assets in Argentina, while Bitso (a popular crypto platform in Latin America) brokered the deal.

Football and crypto deepen the relationship

Argentina’s economic condition is not in its best shape. One of the largest countries in South America, it has faced a number of problems, including political crisis, galloping inflation and unemployment in recent decades.

The crisis worsened last month when Economy Minister Martin Guzman resigned from his post. Interestingly, the monetary chaos became a reason for the local population to shift their focus towards digital currencies and, more precisely, stable coins.

Interest in such financial products appears to be increasing in other fields, including the sports sector. As reported by Bloomberg, Argentina’s elite soccer club – Club Atlético Banfield – sold its 23-year-old midfielder Giuliano Galoppo to one of Brazil’s most successful teams – São Paulo – for USDC worth $8 million.

The token is a digital currency issued by the American financial and payment company Circle, linked 1:1 to the value of the US dollar. As a stablecoin, USDC acts as digital cash, enabling consumers to hold an asset of the same value as the dollar and transfer it seamlessly across the globe.

However, it is worth noting that domestic regulators were not happy with the deal. The Central Bank of the Argentine Republic (BCRA) insisted that Banfield must settle the received USDC in the Single Free Exchange Market (MULC). In other words, the club will not be able to keep its stablecoin holding, but will have to convert it into Argentine pesos.

In addition, for conducting cryptocurrency operations and violating national laws, the team will lose access to MULC for three months, from the date Galoppo’s transfer was completed.

São Paulo’s love for crypto

The Brazilian soccer giant has already shown its support for the digital asset universe. Two months ago, it partnered with Bitso to allow fans to buy match tickets in cryptocurrencies, including Bitcoin (BTC) and Shiba Inu (SHIB). In addition to helping São Paulo, the platform will also act as its financial sponsor for the next three years.

The first supporter to buy a ticket in crypto was Fabio Gloeden Brum, 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