Bitcoin for Cross-Border Transactions in Argentina
Cryptocurrencies – probably the only form of money that can go around the world and be sent without having to deal with currency conversions or country borders. That’s why people love cryptocurrencies and they are finding more and more followers. The Argentinean Banco Masventas has also recognized this and now relies on Bitcoin to handle cross-border transactions.
Bitcoin can may be the Solution against Inflation
in struggling Countrys like Argentina
Cryptocurrencies like Bitcoin would be able to work with banks. The only question is, why they do not. There is a good reason why banks have been battling Bitcoin for many years and not Fiat currencies.
Nevertheless, banks around the world are looking for ways to provide this functionality. For this purpose, innovative features will need to be experimented with. In the case of the Banco Masventas Bank of Argentina, the focus is on the use of Bitcoin as a means of handling cross-border payments. That’s pretty intriguing, because it’s the first time a bank has recognized the potential of cryptocurrencies in this regard.
This change, which came into effect Monday, was made possible through a partnership with Bitex, a startup focusing on bringing cryptocurrency services to Latin America. This development is interesting for many reasons, including the fact that this solution wants to compete with Swift.
Considering that consumers have showed increased interest in mobile payment solutions in recent years, incorporating cryptocurrencies makes a lot of sense. It is also a smart move by Banco Masventas, as the company wants to lower its costs and expand its presence in the market. With Bitex on board as a strategic partner, that should be doable in the long run.
For customers of Banco Masventas, very little will change on paper. They will go through the same process of sending cross-border transactions, but the service will work very differently behind the scenes. Bitex will conduct cross-border transactions for the bank with Bitcoin, speeding up the process and reducing overhead costs in the process.
Given Argentina’s struggles with inflation and financial hardship, embracing cryptocurrencies is of the utmost importance. It is one of the few solutions which can make a positive impact on the country’s financial system.
Crypto currencies are so attractive because they offer the following advantages over Fiat currencies:
1. They can not be multiplied at will, thus providing some protection against inflation.
2. The currencies are independent of banks and state intervention.
3. Since no data is exchanged between sender and receiver of the crypto currencies, the anonymity of transactions is retained.
Even so, embracing the likes of Bitcoin for this purpose remains a big risk, as cryptocurrencies are inherently volatile. But the chances are great that they can be integrated into the system.