Most cryptocurrency enthusiasts have shown an interest in this form of money because of its global appeal. It is the only form of money which can reliably be sent across the world without having to deal with currency conversions or country borders. Argentina’s Banco Masventas has acknowledged this, as the institution now relies on Bitcoin to settle cross-border transactions.
Bitcoin and Banking can Work Together
There is a good reason why banks have opposed Bitcoin for many years. This form of money is capable of doing something that’s currently impossible to do using the traditional banking system. More specifically, Bitcoin and similar currencies are capable of sending value across borders without any real restrictions, whereas fiat currencies are not.
Even so, banks around the world are looking for ways to provide this functionality. To that end, innovative features will need to be experimented with. In the case of Argentine bank Banco Masventas, the focus lies on using Bitcoin as a way to complete cross-border payments. That is rather intriguing, as it is the first time that a bank has acknowledged 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 will compete with the likes of 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. Even so, embracing the likes of Bitcoin for this purpose remains a big risk, as cryptocurrencies are inherently volatile.
