Image Credit: Express.co.uk
In a landmark trade deal, the Customs department of two Latin countries: Paraguay and Argentina have settled a payment using Bitcoin. The international banking payment’s network by SWIFT was left untouched during the transaction, i.e., the entire operation was performed using Bitcoin and local subsidies.
Paraguay bought pesticides and fuming products from Argentina worth $7100 and settled the payment in Bitcoin. The departments of both countries hired Bitex to facilitate the transactions. Bitex is an international payment’s service provider that facilities buying, selling and accepting Bitcoin payments.
The CMO of Bitex, Manuel Beaudroit noted that,
Beaudroit stressed that with this type of initiative, efforts are being made to connect the Latin American economies and make them more competitive in the markets, demonstrating the value of bitcoin for these operations.
"We are part of the ‘Export Simple’ program, which facilitates the export of goods and services below 15 thousand dollars, we promote international payments," said Beaudroit.
The ‘Export Simple’ program which originated in Latin America aims to foster the GDP growth of Latin American countries by facilitating ease of export for small traders. Under the plan, traders can export goods and material internationally without requiring an export license for items weighing less than 300 Kg or costing less than $15000.
In May 2018, the Argentine bank, Masventas announced a partnership with Bitex to allow customers to use Bitcoin for international payments as an alternative to SWIFT. In this way, customers were allowed to transfer money from one account to another in less time than traditional bank transfers.
José Humberto Dakak, the principal shareholder of Masventas, said at the time that the measure was intended to strengthen the bank's digital and smartphone-based services and reduce the costs of the banking service.
"One of the initiatives is to use Bitex as a strategic partner to provide our foreign clients with payment and collection services," he said.
The cryptocurrency enthusiasts have expressed for a long time that Government approval for digital currencies is paramount to the success of any Fiat or Cryptocurrency. The Latin American Governments have progressively accepted Bitcoin and other cryptocurrencies to fight the demon of hyperinflation and reduce remittance cost.