It looks like Banco Masventas could be the first bank in the world to replace SWIFT with a blockchain-based transfer system. Their largest shareholder announced that Banco Masventas would tap into bitcoin to make international money transfers and that the service would be available in over 50 countries.
The SWIFT system is a data transfer system that was set up in the 1970s and is archaic by modern standards. Banco Masventas largest shareholder claims that the new Bitcoin-based transfer system will cut the transfer time down to 24 hours, which is much faster than SWIFT. They have teamed up with Bitex, a Latin-American Bitcoin exchange, to make this innovation possible.
In his statement, Jose Dakak, the largest shareholder of Banco Masventas, outlined how bitcoin would only be used as a means of transferring funds and wouldn’t expose their customers to any risk. Because the Bitcoin blockchain is being used as a means of transferring money, the customers of the bank aren’t investing in cryptos.
Many Options Available
SWIFT-based international transfers can take weeks to clear, and this leaves the system open to replacement. A big part of what makes blockchain so perfect for undercutting existing banking services is the fact that all of the work that would be done by people is actually just part of the blockchain itself.
Instead of having to rely on the integrity of bank employees and the oversight that a third party like SWIFT provides, blockchain-based systems are nearly impossible to corrupt by comparison. The practical upshot to this is massive cost savings, which are passed along to the people who use the system. For Banco Masventas’ customers, international transfers will take 24 hours and cost 3% +VAT.
Bitcoin wasn’t designed as a replacement for SWIFT, but other cryptos like Dash and Ripple are purpose-built to handle the transactional role that major banks currently fulfill.
There was no comment made by Mr. Dakak on the choice of Bitcoin as the carrying network for Banco Masventas’ international transfers. As other systems gain wider acceptance, there may some incentive for banks to choose one Blockchain for all of their transfers.
Argentina Is Open To Cryptos
While this is the first word out of Argentina about Bitcoin supplanting SWIFT, the southern nation made headlines earlier this year when it was announced that 4,000 Bitcoin ATMs would be installed all over the country.
Argentina had long been associated with heavy-handed government control over the economy, but with the administration of President Macri, all that has changed. Now it looks like Argentina is positioned to take advantage of the cost savings and flexibility blockchain can offer the banking sector.
Nicholas Say was born in Ann Arbor, Michigan. He has traveled extensively, lived in Uruguay for many years, and currently resides in the Far East. His writing can be found all over the web, with special emphasis placed on realistic development, and the next generation of human technology.