Banco Masventas (BMV), an advanced Argentine bank, is choosing Bitcoin instead of SWIFT for its cross-border payments, referring to lower rates and faster transfers.
As stated in the statement on the bank’s website:
“The service makes it possible to reduce the costs associated with international transfers, since there are no international banks as intermediaries. Logistic solution allows you to reduce the time spent sending or receiving transfers up to 24 hours.”
Although there is no mention of Bitcoin (BTC) in BMV marketing materials, they chose Bitex as partner. Bitex is a financial services provider over the bitcoin blockchain that allows customers to buy BTC and make international payments for companies.
Payments sent via Bitex are made through a concierge service, which converts the transaction to Bitcoin, then converts it into the recipient’s currency and completes the transaction using the local bank.
This step was taken shortly after the Argentine government raised interest rates to 40% in an attempt to fight the amount of capital that leaves the country. However, even after the rate hike, this didn’t help the Argentine Peso, which continues to decline steadily.
The crisis in the country encourages the growth of the number of people trying to send their money outside the country to save their capital. The innovation introduced by BMV can try to satisfy the requirement of customers to withdraw funds from Argentina, offering a cheaper way using a blockchain-based solution.
For people who want to withdraw money, the recent sharp decline in the cost of Bitcoin doesn’t matter. For them, more interested in the technology and its advantages over SWIFT.
If the Argentines will use Banco Masventas proposal, we can see a trend in the growth the cryptocurrency upward, which to some extent reduces its volatility. However, don’t forget that all this activity will be obtained from the purchase of Bitcoin only for its immediate sale.