In an interesting first-ever event, Argentina and Paraguay have used bitcoin to settle a payment transaction for an export deal between the countries, according to a local news outlet.
The two South American Countries have used the world’s most popular cryptocurrency to finalize Paraguay’s purchase of pesticides and fumigation products from Argentina. Paraguay paid an estimated amount of $7,1000 worth of Bitcoins to complete this transaction. The Bitcoin payment became instantly converted into Argentine pesos through using Bitex, a financial service provider that supports Bitcoin payment.
According to the local news report,
“The service is always quoted in local currency. In this case, Bitcoin is just a vehicle to process the payment. The exporter receives Argentine pesos or dollars, and the buyer pays in local currency.”
Marcelo Moscatelli, Chief Commercial Officer for Bitex, recently stated that industry competitors Swift created fixed costs that are much more suited for larger players transferring large amounts in cross-border transactions. Expensive markup fees for converting currencies in cross-border transactions are also a percentage of the amount being transferred
Although, for much smaller or medium-sized businesses, Bitex is definitely the best choice. The platform will charge its users a total of .5% for transactions and offer a key value proposition: speed. This payment can be finalized within an hour, avoiding typical traditional delays that can cause settlements to take a total of three days.
Originally founded during 2014 this Argentine-based fintech was developed to deal with the market segment for smaller payments between $150 and $5,000. For companies based in Argentina, Bitex is capable of facilitating Bitcoin payments with suppliers in Australia, Brazil, Chile, China, Paraguay, Uruguay, Mexico, and the United States.
Bitex was also known for previously participating in a crypto project that was initiated by Argentine bank Masventas. During May 2018, Masventas announced its plans to develop an alternative to the SWIFT payment system utilized by global financial institutes. Bitex was appointed to provide the necessary ecosystem for supporting bitcoin transactions.