Today, it was reported that the Argentinian Bank called Banco Masventas will actually be using Bitcoin in real transactions. This stands in stark contrast to the current practice of banks only using crypto in testing capacities or pilots.
This process will be driven by a partnership between Banco Masventas and a Latin-American blockchain company called Bitex. Banco Masventas or BMV states that their future product will let customers send money between accounts in significantly less time than traditional bank transfers. Precisely, BMV said that this could equal up to 24 hours less time, on average.
On BMV’s side, it is hoped that this service also will decrease its costs related to all of its digital services, including its mobile phone services. In addition to this, there will also apparently be an advantage on the B2B side as well. Firms that partner with BMV on this service could even provide quick bill, or even debt collection services on the future platform.
As of now, of course, most of this is up in the air as the service isn’t yet live. This could mean a snowball towards other banks, across the globe, developing or excepting similar services.
On the other hand, it could also end up being another project that didn’t quite do what it was meant to. As with all crypto projects, it all depends on the execution or, in other words, what happens after what is usually termed, “the mainnet,” launches.
Even so, BMV seems confident in the project’s prospects. According to Coin Desk, past successes like that of SWIFT, the company which facilitates most traditional international bank transfers, could bode well for BMV and Bitex.
SWIFT specifically reported that its Blockchain-based internal, bank to bank transfer pilot went “extremely well.” By July 2017, it had risen from having 34 partners on the project to having around 56. With no reports to the contrary, it can even be assumed that SWIFT’s number of partners has continued to rise. Even so, SWIFT cited concerns related to bank security and overall data privacy, in the same report. Therefore, it could possibly be said that once these concerns are better addressed through the specific work of Blockchain teams, banks will begin to actually widely adopt Blockchain tech, at full-scale.
By: BGN Editorial Staff