Argentina and Paraguay have processed the first export using Bitcoin (BTC). A pest control seller in Argentina had to send goods to Paraguay and receive a payment of $7,100. Using the SWIFT network, this transaction would have a fixed cost between $120 and $150. This is something that does not help smaller exporters.
Using Bitcoin, it is possible to reduce transaction times and costs for exporters all around the world. In order to process the transaction, the buyer contacted Bitex and it processed the transfer using Bitcoin in just an hour. In this way, the cost of this operation was just 1% of the transaction, close to $71.
Clearly, this is a good option for smaller payments between borders that want to be processed fast and in an easy way. For transactions surpassing $15,000, it might be not so convenient to use this service.
The exporter receives the payment in Argentine pesos (ARS) or in Dollars (USD) rather than in Bitcoin, which is only used to process the payment. The buyer also pays using his local currency.
Marcelo Moscatelli, in charge of the commercial area of Bitex, commented:
“The service is always quoted in local currency. In this case, Bitcoin is just a medium to process the payment. The exporter receives Argentine pesos or dollars, and the buyer pays in local currency.”
Bitex has several clients in the region. It is already processing payments for Airbnb in Chile for those that want to pay between $150 and $5,000. In Argentina, it is possible to receive payments from Chile, Paraguay, and Uruguay. Those that want to send funds to other countries from Argentina can do it to Chile, Paraguay, Uruguay, Mexico, Brazil, the United States, China, and Australia.
This is very positive for parties that want to transact funds from one country to another. It is possible to reduce the number of intermediaries, it is cheaper if the funds sent are smaller than $20,000, it is faster and it is not necessary to fill several documents.
A few days ago, we wrote at BitcoinExchangeGuide that individuals in Argentina are now able to pay for public transport using Bitcoin. Bitex has also been involved behind this development as well, showing that the company is trying to bring cryptocurrencies to the masses in the region.
Bitcoin (BTC), Ethereum (ETH), XRP (Ripple), and BCH Price Analysis Watch (Feb 13th)
