Argentinian Bank Adopts Bitcoin-Based International Payments

Not long ago, we published an article discussing how Russia has built a blockchain system that would serve as a SWIFT alternative, in case the payment network withdrew from the region.

Now, recent reports indicate that the Argentinian Banco Masventas (BMV) has launched a partnership with Bitex that will allow customers to use bitcoin for cross-border payments, as a direct alternative to SWIFT. The move is quite unique, granted that banks have actively been investing in blockchain technology, yet not many are keen on promoting the use of bitcoin.

José Humberto Dakak, who is a principal shareholder for the bank, recently stated that: “One of the initiatives is to use Bitex as a strategic partner to provide our overseas customers with payment and collection services at the Bitex Exchange.” He continued by mentioning how the move will likely reduce costs, while also improving the bank’s smartphone and digital services. At this time, it seems like the service will reduce payment transfer times by at least 24 hours.

Bitex, which is a Latin American blockchain financial service provider, believes that the system will not only make international payments more efficient, but rather will increase their security as well. The company reportedly respects all know-your-customer protocols, and have even hired an audit firm which would serve as a third party, meant to review and provide reports on current operations.

Another similar move took place a while ago, when the British Santander Bank announced the release of a mobile payment service, based on Ripple. Similarly to the BMV, the solution quickens payment transfers, yet in this case, does not use Ripple (XRP) as a coin.

It is however important to note that while the BMV will facilitate bitcoin-based international transactions, the bank will still charge a 3% service fee alongside VAT. Therefore, using bitcoin alone would be a cheaper alternative, yet the comfort of having a third party take care of everything may be appealing to the target customers.