Bitcoin Forum

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.

If anything, it seems like a marketing tactic. Bitcoin is not meant to be used with bank. Banks can do whatever they want to transfer money and it doesn't matter. Using that bank just because its related to Bitcoin doesn't support what Bitcoin is meant for; Removing the bank from the equation. I don't see how they could deal with the volatility of Bitcoin when transferring money across. The fees incurred from trading between fiat and BTC could be significant.

Wasn't the news just about bitcoin payments using bitcoin being legal in Argentina? Not so sure about the Argentinian banks actually using BTC.


BTC is removing banks from the equation sure, but nothing's stopping banks from actually using BTC. I really doubt it though, due to the volatility like you said.

If they are doing it anything like this then it would be a path-breaking move from the banking industry because generally banks are worried about the growth of decentralized cryptocurrencies and as said by the experts, "Bitcoin will do to banks what emails did to the postal industry". It would be very beneficial for everyone if banks are adopting new technologies to optimize their service.

I really don't think that banks will go this way... The volatility will stop them to exchange the fiat to bitcoin and vica verse...
But something came into my mind... What happens if a bank decides that they will use e.g. 10 million USD per month to do the international transfers with bitcoin, and they will do a hedge trade with bitcoin futures to cover the possible losses that can happen because of the exchange rate drop... in this situation, they cannot lose if the exchange rate drops, so they're fine... The real question is in this case, the price/fees of the bitcoin futures trade is less or equal compared to the SWIFT system's price/fees...

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.

Of course it is a marketing strategy, but if banks don't see any other way than to act like banks for crypto in future they will try to go this route and as many people are already comfotable with banks they will simply bear with it without even knowing what bitcoin is and what it core principles are. If you ask me better then build some system with blockchain on top and esclude crypto for their alternative to swift. Now there is hyperledger for that if they want to play with it. Imagine if those banks got hacked and all their coins got away whos to blame eh

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.

This sounds good. Hearing as more and more people in the world starting to consider bitcoin as something positive, not a thread

good information, I see Argentina is a friendly country with crypto.

but temporary, payments for export or import commodities will be hampered as only a few countries legalize bitcoin as a means of payment.

so, fiat now still has a function, but in the future fiat will die, so only gold and bitcoin that survive and have value.

This is a good news for all the crypto people who supports this kind of matter,  Bitcoin is everywhere, by accepting this worldwide is really a huge achivement and previlage for crypto people.

As I understand they'll launch some new coin on Bitcoin base (kinda a fork) but centralized one so they can control it. Just like Ripple for example

If that is the case then this is dead on arrival. A private bank owned alt-coin? Come on man, that is stupid.  If they are going to use bitcoin like a grown-up then it is a big deal.

Here's the article in question in case someone interested in reading it.

https://www.coindesk.com/bank-argentina-just-added-bitcoin-cross-border-payments/


So this is just a service that they're offering to their customers?
The banks themselves are not going to be using Bitcoin themselves for cross-border payments.

Any bank that will use bitcoin for cross border payments is doing so to attract the section of cryptocurrency users. Exchanges are already performing those functions so I think the banks need to focus on their normal services and leave this to exchanges.

This is really a good news to hear it will make bitcoins popular on that country. if its only seen by the other country and begin implementing services powered by blockchain they would become a advance country.

My own contribution will be in question for question, 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 in off 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.

This is great. Both Swift and Western Union are horribly expensive. Lets hope more banks see the light about the benefits of bitcoin.

I think it is going to be faster than Swift, because Swift does not deal with individual transactions like Bitcoin does. The Banks settle

the "balance" after a lot of transactions between them with Swift, so it is not comparable to Bitcoin settlements.  We usually only see

the end result of Swift transactions when transactions are batched and settled between the Banks. Bitcoin is definitely going to

disrupt Swifts services.  ;)

It's a kind of tric from the side of banks. Because they realise that there is no way to protect banking system,so they forced to accept bitcoin  to cross border payments.

This has been going on for a long time, just that they are not daddy for people to know.

Well I'm not quite sure about the source of the news & validity, if so this will be a massive initiative for adoption of Crypto currency by the other governments & major companies. Since the banks are much afraid & against for this decentralized Blockchain system it was said to be applied more regulations. Security & scaling issues which Blockchain has. Meantime one or two institutions can try out the BITCOIN transactions to attract their clients. But overall it will take some time to adopt BTC widely due to lack of belief in virtual currencies by mass community.

Bric countries and south-east asia countries are relying on ripple and another blockchain to do cross-border transactions in reality it is positive movie for blockchain industry

While this is a welcome development, it must be pointed out those from the south American continent who plunge in first will take the biggest cut of the pie and enjoy an overwhelming support over time. the bitcoin is breaking barriers and proving reliable amongst trust worthy, firts rate companies who understand the meaning, purpose and uses of cryptocurrency.

I'm very surprised at this information. It seems to me that the Argentine bank that adopted this decision is not a state bank. It's probably some kind of PR, not a sober calculation. Bitcoin is not designed to serve the banking system. A ripple coin is very suitable for this. It is a good substitute for the outdated SWIFT banking method when transferring funds.

We are talking about cross-border payments here rather than domestic transactions. So, I believe Banco Masventas is adding Bitex to eliminate other partner banks that can help banks reduce costs. However, this is what I assume because the main model of operation and partnership is not available for public viewing. For the time being, payments for imported or exported goods will be impeded as only a few countries legally make bitcoins as payment instruments.

Another civilized country began to use blockchain and cryptocurrency, I am very glad that the world supports these technologies and develops. If I'm not mistaken the first banks that introduced this technology were Swiss banks.

Bicoin Mitchell, I think it's a good thing to approve the banking of the banking era in the upcoming era. I think it will also make it easier for customers and quickly develop into the business world and the world.

But then does it make sense? The banks adopting the cryptocurrency, the use of bitcoin. It is like slapping in there face that there is something better than you. But then we canmot say. There is a possibility that they will adopt this kind of improvement. It is like buying bitcoin over the counter, a face to face transactions maybe. Lets just see what will.going to happen in the future.

As per my experience, for me yes Bitcoin has eliminated all intermediaries for cross border payments except the fact that a person is a internet and bitcoin user but will a bank do the same is a big question mark as banks are guided by central rules and regulations and I think Bitcoin has still not secured that place in the market that it is used by banks.

If anything, it seems like a marketing tactic. Bitcoin is eant to be used with bank. Banks can do whatever they want to transfer money and it doesn't matter. Using that bank just be

In Argentina, demand for Bitcoin is increasing day by day. I think the trust in Bitcoin is growing in the face of the economic trend. Bitcoin, especially in countries struggling with inflationary impact, can be a salvation.

So using Bitcoin for money transffer crossborder or not is too easy. Some people still using Western, Paypal or something like that. I can't understand why are they doing that.

Yes it is. Already some banks gave permission to use bitcoin, and others still think about it. But I think in any case sooner or later bitcoin will turn into a currency that can be used in the banking sector.

I didn't understand this anyone can send bitcoin themselves for any cross border transactions as a payment means then why anyone include bank in these transactions and if bank involved in theses transactions then i think purpose of bitcoin will not fulfilled.

i dont think any one will go to bank for making cross border payment with bitcoin.
bitcoin p2p transaction and bitcoin dosent need any 3rd party helper to complete a transaction.

it's huge if in the future all banks also make cross-border payments
i know by using Crypto we become our own bank
but with a bank that provides cross-border payments, it also helps to spread about bitcoin or crypto
so that's good news

Cross - border payment is not limited to only Bitcoin, Blockchain has provided the technology that enables cross-border payment. Cryptocurrencies as a whole will helps banks make cross-border payments.

It is likely for the banks to create their own cryptocurrency or adopt something that is centralised like ripple protocol. However, accept it or not but decentralization is the future and if banking industry is expecting to survive in the modern world then it has to adopt blockchain technology in some way that will at least have the ability to compete with decentralized cryptocurrencies.

That is good informative to everyone Bitcoin user,banks will accept in Bitcoin for the payment system I like this system.few countries do not accept in Bitcoin not now we want to him everyone countries will need accept bitcoin that is right for me.

Bitcoin could still be a cost effective payment method for smaller transactions, but businesses doing large size payments are likely better off doing traditional bank wires or working with cross-broker. In time, as liquidity in other currencies grows, and exchanges drop fees in response to competition, all this may change.

Better to use bitcoin than ripple, at least it is decentralised so no one pack up and run at any time. For cross border transfers they can wait 30 mins for confirmations, lightning speeds are not needed for this purpose.

Swift has been around for ages and it is definitely not suitable for the fast paced lives of people today. Why do you want to wait 1 to 2 days for inter Bank settlements, if your cross border transactions can be done in 10 minutes.  ???

This is probably why some Banking groups like R3 are working on their own inter settlement payment network and why some Banks are riding the Blockchain hype. <Some Alt coins like Ripple are just too keen to bend over for these Banks.>  ::)

I don't think there is any thing big to this the only thing I see in that development is just a marketing strategy to make more profits for the both the bank and the company, because bitcoin has always been used for cross border transactions long before now so the bank coming to adopt that  usage is to it own profit advantage.

I think this is true that bank will use bitcoin to make cross- border payments. Actually nowadays, bank also use bitcoin in some countries

as far I can recall the news was about using Blockchain to make cross-border payment, not specifically any crypto or Bitcoin. Please link the news so that we can get the real picture.

This is exactly what i was thinking. It seemed at a joke at first.

That is in fact, a really good strategy. If they do it properly and it turns out fine, then the possibilities for Bitcoin will be endless for banks and that of course will contribute towards mass adoption a lot more. I believe it's probably a matter a time before it happens.

Especially Argentina could make good use of it to ease the inflation spiral if they know what to do.

The Banks operate on centralized policy which is regulated by the Government  but Bitcoin is operated by Decentralize policy  .The Banks don't need to integrate Bitcoin policy into their system , they have their own old outdated way of transferring money when it comes to trans- border issue. bitcoin is revolution fixing all Banks challenges and loopholes and will be operate as single entity and standing alone  in the future

It seems like a marketing tactic. Banks can do whatever they want to transfer money and it does not matter. In Argentina, demand for Bitcoin is increasing. So, using Bitcoin for cross currency transber or not is too easy. I can not understand why they do it. There are a number of banks that allow the use of bitcoin, and others still think about it. I do not think anyone will come to the bank to make cross border payments with bitcoin.