In a major first of its kind event, two South American Countries, Argentina and Paraguay have employed world’s most popular cryptocurrency, bitcoin to settle payment transactions for an export deal between them, as reported by a local news outlet.
According to the local news report, Paraguay purchased pesticides and fumigation products from Argentina and paid an estimated amount of $7,1000 worth of Bitcoins to complete this transaction. The transaction was instantly converted into Argentine pesos through using Bitex a financial service provider that supports Bitcoin payment.
“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.”
The Chief Commercial Officer for Bitex, Marcelo Moscatelli, stated recently that the industry competitors Swift created fixed costs that are much more suited for larger players transferring large amounts in cross-border transactions. The expensive markup fees involved for converting currencies in cross-border transactions are also a percentage of the amount being transferred.
Though for much smaller or medium-sized businesses, Bitex is definitely a better choice. A total of .5% for transactions will be charged and an added key value proposition of speed is added. The payment can be finalized within an hour, avoiding typical traditional delays that can cause settlements to take a total of three days.
Read more: Sharjah City Will Soon Launch A Blockchain-Enabled Waste Permit Portal
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