In Argentina, Banco Masventas revealed that, starting next Monday, it will allow its customers to make cross-border payments using Bitcoin.
In partnership with the Latin American market startup, Dicks, founded in 2014, this bank will use Bitcoin as a means of payment for cross-border transactions, as an alternative to the traditional Swift system.
In partnership with the Latin American market startup, Dicks, founded in 2014, this bank will use Bitcoin as a means of payment for cross-border transactions, as an alternative to the traditional Swift system.
A little correction is needed in your thread. Banco Masventas has partnered with Bitex and not "Dicks" (really!!!?
). They are planning to explore bitcoin payments using bitex platform. A normal person will pay in fiat and bitex will convert it into bitcoin to send it to the recipient bank. The recipient bank will receive the money and convert it back to fiat. That is the basic operational structure of this partnership. They are trying to cut the intermediary banks to lower the commission and maximize the profit from each cross-border transaction, which is actually possible with cryptos. so how does the bank do the bold part? meaning how do they convert bitcoin to fiat? are they going to use another exchange other than bitex which they are working with? or are they planning on running their own exchange platform? or maybe they plan on selling it off the market?!!!
none of that make any sense to be honest! in all this process there will be a time where they have to transfer fiat and that is just an unnecessary step which will only increase the fees.
Since the nitty gritties of the partnership is not out in the market, I am really not sure about how they are going to do it. However, I assume the system will be like this. Remember, we are talking about cross-border payments here and not the domestic transactions. Cross border payments usually require one or two partner banks to facilitate a payment which increases the commission and thus the cost to the sender.
So I believe Banco Masventas is adding Bitex to eliminate other partner banks which may help the bank to reduce cost. I doubt any other exchanges will be added to this system and Bitex will take care of the conversion formalities. However, this is what I assume because the main model of operation and partnership is not available for public viewing.
