Bitcoin
Bitcoin$33 904.92

2.71%

Ethereum
Ethereum$2 008.31

1.59%

Tether
Tether$1.00

0.04%

Binance Coin
Binance Coin$286.19

-0.59%

Cardano
Cardano$1.24

-1.04%

XRP
XRP$0.603442

-5.99%

South America: a new crypto currency haven


20 Feb 2019   #Bitcoin

Last week, an international trade transaction has been concluded between two South American countries, namely Argentina and Paraguay. The former bought $7.100 worth of pesticides and fumigation products from its trade partner. Although it may seem like a trade deal unworthy of anyone’s attention, that event was of historic significance for the world of cryptocurrencies.

The details of the deal


The very fact that Paraguay used Bitcoin (BTC) to pay the Argentine Republic for the mentioned batch of agricultural chemicals silenced many critics of that payment method. The transaction was handled by Bitex, a crypto-banking service that carries out currency swaps between crypto and the G20 fiat currencies. Before the deal between the two neighboring countries, Bitex positioned itself mostly as a service that handles mid-to large scale business-to-business remittances. But now it looks like they can add the intergovernmental payments to their range of offered services.

The purchase of agricultural commodities was performed like any other deal that involves exchanging cryptocurrencies to fiat money.

The Argentine Republic has proven to be particularly supportive of various initiatives that involve cryptocurrencies. The deal with Paraguay has been conducted within the framework of the program called the Exporta Simple (Facilitated Exports) which was officially endorsed by the government of this South American country.

The primary goal of this program is to help businesses, in terms of logistics and transaction handling, to execute trade deals worth up to $15 thousand per contract with the annual cap of $600 thousand. Apparently, the Argentinian officials decided to set a good example to domestic businesses by accepting the payment in Bitcoin. Regardless of their reasoning, this event was of particular significance for the global crypto entrepreneurial community that perceived this deal as the prerequisite to the softening of the position of governments in the developing countries towards doing business in crypto.

Manuel Beaudroit, the co-founder and CMO of Bitrex, expressed his sincere hope that the deal between Argentina and Paraguay would serve as an incentive for governments and businesses beyond Latin America to make a gradual shift towards making cryptocurrencies an integral part of their operations.

Argentina and Bitex to form a strong bond


Last year, Banco Masventas (BMV), one of the biggest banking institutions in the Argentine Republic, announced that they had formed the partnership with Bitex to provide the opportunity for the customers to carry out cross-border payments using cryptocurrencies, mainly Bitcoin. 

The bank has set itself a rather ambitious goal which is to become a fully-fledged alternative to SWIFT by providing the means for fast and inexpensive financial transactions.

According to Jose Humberto Dakak, the bank’s chief shareholder, Banco Masventas wants to become a pioneer of cryptocurrency-based banking services in South America and give the customers more options for receiving and sending domestic and international payments. He believes that partnership with Bitex would make it easier for the bank to implement this idea into practice.                 

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2021 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.