The saying says that if you can’t beat them, then join them.
Bitcoin and its brethren have been considered as a threat to the dominating traditional banking system for quite long, so as in some countries governments try to tackle down the crypto-rage, in others, they try to jump on the crypto-bandwagon.
That is exactly what is happening in Argentina as one of its banks is going to deal with the blockchain-based platform.
Argentinian Bank ‘Joins The Club’
BMV, an Argentinian bank, has recently informed about its collaboration with a South American financial services provider, based on blockchain, to make the financial life of its clients more effective.
This provider is Bitex, and it is going to allow people to use BTC for carrying out cross-border remittances. The new project is considered to be a great alternative if not the substitute for SWIFT international payments. BMV, which, by the way, stands for Banco Masventas, announced it partnership with Bitex in a Facebook post, dated May 21.
In accordance with BMV’s announcement, the novel service permits their clients to send money from one account to another one much faster than traditional financial institutions can do that. The Argentinian bank says the partnership with the blockchain-based provider will cut the remittance time to less than 24 hours.
“One of the initiatives is to use Bitex as a strategic partner to provide our overseas customers with payment and collection services at the Bitex Exchange,” said José Humberto Dakak.
Dakak is the main shareholder of BMV. He also said that this modification is going to:
- reinforce the bank’s digital services, as well as those based on smartphones,
- cut the banking service charges
At the same time, Bitex pledges that this move will increase the security level of each transfer. As per the provider’s website, it watches the most rigorous compliance principles as well as KYC measures.
Moreover, the operations and various procedures, including reviews of balances and funds on clients’ accounts, will be checked at Bitex by a newly-hired audit company Deloitte. This firm is known to come out of the “Big Four.”
Other Fresh Ideas
It is also noteworthy than earlier in May, Ripple, the company which runs the third most valuable cyber coin in the world XRP, set off its another project. This project is a platform which is aimed at supporting cross-border remittances in public currency between various financial establishments, and its name is xRapid.
Those institutions, which have already taken part in xRapid’s transactions, have informed that they managed to save around 40-70% on each remittance. According to reports, transactions via the pilot project lasted only two minutes, whereas it takes around 2-3 days for the cross-border to be conducted in a traditional way.
Interestingly, the financial services network SWIFT (which is, by the way, can be endangered by Bitex in Argentina) is also looking into the emerging technologies. In particular, the provider released a report, in which it is considered how DLT PoC (proof of concept) could assist in carrying out account adjustments.