Argentine bank launches service “without intermediaries”

An Argentine bank could soon become the world's first bank to use Bitcoin for international transfers.

The initiative, launched by Banco Mesventas (BMV) on May 22, is the result of the bank's partnership with local blockchain startup Bitex. Once payments can be sent, BMV will be the first banking institution to actively use Bitcoin for international payments.

This option is an alternative to the SWIFT network, which has shown many security problems in recent years.

“This service will allow you to reduce the costs associated with making international payments, since there are no intermediaries - usually international banks - completely absent,” the website says bank.

The service will initially be available in 50 countries, with payment terms reduced to 24 hours.

If this initiative is successful, Argentina will be significantly ahead of its neighbors in the field of digital banking. In April, an event called “Bitcoin Day” was held in Buenos Aires. This event demonstrated how strongly people in the capital support the development of Bitcoin. 

Changes in legislation in the country have led to operators committing to install thousands of Bitcoin ATMs in Argentina this year.

The authorities in Chile, for example, has taken a restrictive approach to cryptocurrencies.

Earlier this month, Brazil's largest asset management firm switched to an over-the-counter cryptocurrency trading platform, emphasizing a focus on institutional investments.

Blockchain-based payments are on the rise more popular among banks, and Santander became the first to launch a similar service in several jurisdictions. In April, the Brazilian bank signed a partnership with Ripple.

“Transfers to Europe can be completed the same day, and we are aiming to provide our users with instant transactions across multiple markets by the summer,” the bank said in a statement.