With Bitex and Bantotal, 60 Latin American banks can now use Bitcoin for cross-border payments
Bantotal is based in Uruguay, but provides services in 14 countries in the region.
There is news that can help a city, others to a country, others to an entire continent. Today’s can bring benefits to the inhabitants of 14 Latin American countries that need to send remittances and seek more efficient solutions.
Latin America Banks and Payments News
According to information from CoinDesk today the leading provider of banking technology in Latin America Bantotal is partnering with the exchange of Bitex cryptocurrencies to facilitate cross-border payments through the Bitcoin intermediary.
Bantotal is a central banking service provider based in Uruguay. It serves more than 60 different financial institutions in 14 different countries. According to a Bantotal spokesperson, an estimated 20 million people use the money management services of that provider. It not only operates in Latin America but also in the Great Pacific.
The association also means that Bantotal customers will be able to access Bitex services in a market of other traditional financial services that Bantotal offers through its BDevelopers program.
“With this technology, banks can have access to an API and have control over the entire [cross-border] payment process with visibility and reliability in the bitcoin blockchain,” said Manuel Beaudroit, Marketing Director of Bitex at CoinDesk.
Beaudroit said the average rates associated with cross-border payments are up to five times cheaper than international bank transfers through the system currently used.
In addition, transfers will be significantly faster, according to the spokesperson, who added that payment times for exporters between Argentina and Paraguay last February fell from one month to one hour after switching to Bitex cross-border payment services.
How Bitex works
Coindesk explains that Bitex acts as an intermediary for national and regional banks to convert fiat payments into Bitcoin and then again into fiat, instead of completing multiple fiat to fiat conversions.
Beaudroit exemplified: If I want to make a payment from Argentina to Chile, I don’t need to buy dollars with the Argentine pesos, then transfer the dollars to the United States and then move the dollars to Chile and change them to Chilean pesos. I can simply send a payment from Argentina to Chile directly using bitcoin.
Beaudroit calls it a “peer-to-peer banking” system and explained to Coindesk that Bitex handles the conversion of local currencies to and from bitcoin, as well as its maximum dispersion in regional or national bank accounts. The process is shorter than a normal interbank transfer, which usually takes 2 to 4 days.
However, there are still some obstacles to be added so that more banks join: the issue of regulatory uncertainty and compliance with regulations such as KYC (Know your client) and AML (money laundering), therefore many experts fear that a large part Latin American banks do not join the project. However, some connoisseurs pointed out to Coindesk that the association is also an opportunity to expose the benefits of the use of Blockchain technology to Latin American consumers.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.