Leading cryptocurrency exchange Binance announced on Monday the termination of its partnership with the Argentine Football Association (AFA), citing the association’s breach of contract. The exchange added that it will continue to build and offer services across the country.
Binance Ends Five-Year-Deal
Binance signed a five-year partnership deal with Argentina’s football powerhouse in January 2022. The partnership aimed to enable Binance to offer crypto-based services to Argentine football players and fans. The creation of a dedicated fan token was also part of the deal.
Recall that the AFA had previously ended a signed contract with fan token issuer Socios to join Binance. Although the governing body for the Football Association said that Socios will remain the exclusive issuer of its official fan token ARG until 2026, the fan token issuing platform sued AFA for terminating their partnership.
In the latest announcement, the crypto exchange ended the deal after only a year.
“We regularly evaluate the results of our partnerships around the world and unfortunately, despite being offered time and opportunity, AFA has not fully met its contractual obligations, which goes against our business values and our association principles,” Binance said in a Spanish-language tweet.
Binance also echoed its commitment to supporting the growth of investors within the country. These include universities that will pave the way to educate people and offer “strategic business alliances.”
Argentina’s Need for a Crypto Solution
Public data suggests that the Argentine economy needs digital assets like Bitcoin. In April, the country saw the highest inflation rate. A surge of this kind increases the prices of commodities in the country.
In January, Argentina and Brazil commenced plans to create a common currency that can be used between both South American countries. It is expected that such a move will bolster the economy of both countries. However, Coinbase founder Brian Armstrong stated that both countries should explore Bitcoin as the “right long-term bet.”
