American banks to use Bitcoin for cross-border payments

The largest bank of Latin America, Bantotal is collaborating with a cryptocurrency exchange firm Bitex in order to support cross-border payments across the bitcoin blockchain technology.

Bantotal is the largest core banking service provider, headquartered at Uruguay. Bantotal offers banking services to more than 60 financial organizations in 14 nations. Around 20 million customer’s use money management services of Bantotal, spokesperson of Bantotal mentions.

Chief Marketing Officer of Bitex, Manuel Beaudroit responded to the partnership news saying, including Bitex into Bantotal program is a significant step towards the advancement of emerging technology blockchain.

Further, Beaudroit mentioned that with the help of this new technology, the bank could have permission to access an API and manage the entire cross-border payment process along with visibility and credibility over the bitcoin blockchain.

Uruguayan Fintech Chamber’s head, Sebastian Olivera mentioned that one of the largest banking service providers in Latin America is Bantotal. It is not only a leading player in Latin American but also in the greater Pacific. As for me, Bitex crypto exchange offers an excellent solution for payments, and they will be enhanced by the framework and brand name of Bantotal.

The Bantotal partnership with Bitex indicates that clients of Bantotal will be permitted to access services of Bitex crypto exchange within the market area of other financial services that Bantotal provides via its program ‘BDevelopers.’

As per Beaudroit, the transfers are much faster, after adopting cross-border payment solutions of Bitex in February 2018, payment period for exporters within Argentina and Paraguay at one stage declined from 30 days to 1 hour.

Stellar an open-source payment system also viewed the partnership of its competitor as a positive step.

Further, Partnership director of Stellar Development Foundation, Lisa Nestor informed a source saying,

We think this announcement further validates the value financial institutions are recognizing in digital assets and distributed ledger technology for executing core banking activities like international payments. It’s also no coincidence these product partnerships are being launched in the Latin America market where cross-border payments, even in neighboring nations, can be slow and expensive.

Functioning of Bitex

Bitex basically serves as an intermediate for regional banks and national banks, helps to convert fiat-based payments into leading cryptocurrency bitcoin then again into fiat currency, contrary to numerous fiat-to-fiat transfers.

Beaudriot informed, if you wish to make a payment from Argentina to Chile. Not required to purchase dollars with pesos-Argentinian currency, then exchange the dollar to the United States and then shift the dollars to Chile and transfer dollars into pesos of Chile. Instead, one can directly transfer payment from Argentina to Chile through Bitcoin.

Beaudroit named the technology as a peer-to-peer banking system further briefed that Bitex manages the transfer of local currencies into bitcoin and from bitcoin and also its distribution across national and regional bank accounts.

The time taken by this technology to exchange currencies over borders with domestic banks across Latin America varies from 2 to 8 days and widely relies on financial agents and bank branch used, as per Leo Elduayen- Koibanx, blockchain startup firm’s founder.

Leo further briefed over the entire cross border payment process by using Bitex,

The purchase and [transfer] of bitcoin, Bitex does it all on your behalf. You as a user just send the money, and Bitex takes care of the rest for you.

Beaudroit also believes that this collaboration will increase the GDP of Latin American nations by allowing more money to flow in a p2p way.

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