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Argentinian Bank Gearing Up For Cryptocurrency Use, Ready Fo...
Bitcoin, Blockchain

Argentinian Bank Gearing Up For Cryptocurrency Use, Ready For an Exit From SWIFT

(Last Updated On: May 28, 2018)
A media report published in Toshi Times, the principal shareholder of Argentinian bank Banco Masventas, Jose Dakak remarked that the bank is making necessary changes to begin using the bitcoin blockchain Network for the settlement of international payment. The bank is ready to drop out from the global financial Network SWIFT.

Bitcoin Vs SWIFT

The bank will outsource the conversion process of Bitcoin to Fiat currencies to Bitex, a cryptocurrency payment service provider based in South America. Bitex will send Bitcoin to the recipient. The end cost will be the bitcoin transaction fee that is sent to the miners to 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
– Banco Masventas.

The bank regarding the implementation process of Bitcoin, remained co-operative with the development team of Bitex to make the Cryptocurrency transactions seamlessly received by recipients of Bitcoin payments without boundaries.

 

Dakak said

 

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.

The SWIFT is basically a messaging network enabling world’s biggest banks and financial institutions to share information. The process of sending a payment from one bank to another involves a message to be sent on the SWIFT network, which is further verified manually.

The process of sending international payments and remittance transactions on the SWIFT network can involve at least five business days to three weeks. In most cases, the size of the payment is large taking more than a week for the clearance of the payment.

 

Bitcoin with it’s flexible blockchain network is the most robust blockchain protocol. It is evident that it does not have the biggest capacity but equipped with one of the most active open source development groups in the industry. The security and transparency enable the bitcoin network to operate as a reliable financial network for international payments.

 

Why is SWIFT Still Used?

 

SWIFT network is used by leading banks worldwide. Although the SWIFT network is based on inferior technology, the banks have no option other than using it. This will continue until minor banks like Bank Masventas drop out of the SWIFT network and initiate using Public Financial networks like Bitcoin, which has unique feature of being decentralized and peer to peer.

 

With many banks beginning to use Ripple and Ethereum which are blockchain protocols to process international payments, it will prove significant in showcasing the power of Cryptocurrency as an alternative to the global finance sector .