Argentinian Bank Adopt Bitcoin For International Payments And Drop SWIFT





Argentina's bank Banco Masventas has revealed that from Monday it will enable customers to send payment internationally using bitcoin.

The principal shareholder of the bank Jose Dakak has stated that the bank will drop out of the global financial network SWIFT and begin utilizing the Bitcoin blockchain network to settle international payments.

Jose Dakak said, the bank is partnering with Bitex, a cryptocurrency payment service provider based in South America, he further explained that the bank will outsource the conversion process of bitcoin to fiat currencies (local currencies) to Bitex, which will then send bitcoin to the recipient. The end cost would be the bitcoin transaction fee that is sent to the miners that verify transactions on the blockchain and the fee charged by Bitex.

"The service allows you to reduce costs associated with international transfers as there are no international banks as intermediaries," said Banco Masventas.

Dakak noted that one of the initial actions the bank took to streamline the implementation process of bitcoin was to cooperate with the Bitex development team to ensure recipients of bitcoin payments can be smoothly and continuously receive cryptocurrency transactions without boundaries. 
He stated

"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."

While no real-world transaction have been launched yet, (the service began today), the bank will soon use bitcoin for real customer transactions, Manuel Beaudroit, Bitex Chief Marking Officer told CoinDesk:

"The customers will ask the bank to do an international payment, and the bank uses Bitex as a provider. For the customer, it's transparent, they don't touch, they don't see the bitcoin. we are a provider for them, and they are not touching bitcoin."

The SWIFT network, which is utilized by the world's biggest banks and financial institutions, is essentially a messaging network that enables banks to share information. Sending a payment from one bank to another requires a message to be sent on the SWIFT network, which has to be verified manually.

Sending international payments and remittance transactions on the SWIFT network can take at least five business days to three weeks, depending on the size of the payment. Because most international payments processed by banks are large, it often takes more than a week for the payment to be cleared.

Bitcoin is the most robust blockchain protocol with the longest track record, equipped with one of the most active open-source development groups in the industry. Its transparency and security allow the Bitcoin network to operate as a reliable financial network for international payments.


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