Argentine’s bank, Banco Masventas has announced a crypto friendly move which will get banks from all over the world rethinking the SWIFT system. Banco Masventas will eradicate the system of SWIFT for international transfers and replace it with Bitcoin.
The Argentinian bank has tied up with another Argentinian startup which deals with cryptocurrency exchanges called Bitex. Bitcoin being used by the banking system will shake up the traditional methods and help in the real adoption of Bitcoin in the conventional financial sector.
Argentina is more cryptocurrency inclined compared to its South American neighbors such as Chile. In April it even hosted an event called ‘Bitcoin Day’ in the capital city of Buenos Aires. There are also hopes of thousands of Bitcoin ATMs being installed through Argentina this year.
Bitcoin will help solve many international transaction problems. The main ones being to speed up the transactions along with reducing transaction fees which people have found frustrating throughout the years.
Banco Masventas has stated on their website-
“The service allows you to reduce costs associated with international transfers as there are no international banks as intermediaries.”
The Bitcoin international payment facility will start on Monday for 50 countries.
Banco Masventas is currently strategizing a more efficient banking system which is efficient as even the smartphone applications are not working as well.
Jose Dakak, a principal shareholder of Banco Masventas, commented on the developments of the bank, “One of the actions was to contract Bitex as a strategic partner in the implementation of the Bitex platform for payments and collections operations for our clients abroad.”
How will the Bitcoin system from Banco Masventas work?
Simple, the payments will be outsourced to Bitex. Bitex will convert the amount to Bitcoin and then back into the destination country’s currency. The whole process is transparent making it much easier for customers to witness what’s going on, and understand that it will take less than 24 hours at a far more reasonable transaction cost.
It is not the first financial institution to commercialize Bitcoin. A Berlin Based company called Bitbond used Bitcoin, in the same way, to ensure microloans were made to international clients.
In the future, Santander, which is a Spanish banking giant will also offer a Blockchain based solution to ease transactions concerning speed, cost, and efficiency. Santander has partnered up with Ripple for the Blockchain solution.