It appears the issue of more usage and adoption is indeed entering the crypto world. At least this is the case for two South American nations. Recent reports indicate that Argentina opted to receive payments in Bitcoin (BTC) for goods sold to Paraguay.
The initial report reads thus, “in a first-ever transaction, Paraguay and Argentina used Bitcoin (BTC) to settle the payment of an export deal between both countries.”
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Argentina Received the Bitcoin (BTC) Payment for the Sale of Pesticides and Fumigants to Paraguay
As per the report, smartereum understands that the two South American nations chose to use the world’s leading digital currency by market value to complete Paraguay’s purchase of fumigation products and pesticides from Argentina. It is understood that Paraguay paid about $7,100 in Bitcoin (BTC) to settle the purchase of the products above.
Following the completion of the transaction, the Bitcoin (BTC) payment was immediately converted into Argentine pesos via Bitex exchange. Bitex is a financial services provider in the region that supports Bitcoin (BTC) payments.
Bitcoin (BTC) is just a Means to an End in This Case as the Service is Always Quoted in Local Currency
According to local news outlet Cripto247 regarding the report:
“Services like these are always quoted in the local currency. In this scenario, Bitcoin (BTC) served as a vehicle to facilitate the payment. The exporter typically receives Argentine pesos, or dollars, while the buyer pays in their local currency.”
According to Marcelo Moscatelli who serves as the Chief commercial officer of Bitex, industry competitor Swift sets up fixed costs that are most suited for big industry players who are moving large sums of funds in cross-border transactions. High markup fees for converting fiat in cross-border transactions make up a percentage of the sum being sent.
Bitex Spearheading the Crypto Movement in the Region
For small and medium-size businesses, Bitex offers clear advantages. The Bitcoin bullish platform charges about 5% for transactions conducted on its servers. It offers a key value proposition which is faster speed. A transaction or payment can be completed within one hour; this typically avoids the traditional delays that can make settlements to take about three days or more.
Founded in the year 2014, the Argentine fintech startup has been targeting the market extension for smaller payments between the sum of $150 and $5,000. As for companies located in Argentina itself, local news outlet Cripto247 reports that Bitex has the capacity to facilitate Bitcoin (BTC) payments or transactions with suppliers in Chile, Brazil, the United States, Paraguay, Uruguay, Mexico, China and Australia.
In other news, Bitcoin (BTC) is still the number one digital asset by market capitalization despite many hurdles in the last few months. it is hovering around the $3,700 price position as of press time. While a sustainable move above this position will be seen as a pre-requisite to push an extended recovery near the $4,000 price point, all attempts to settle above this level has so far proven to be futile.
However, the Bitcoin (BTC) price has gained about 2.7% in the last 24 hours amid a global recovery in the overall crypto market. However, looking at the upside, we understand that it isn’t headed by the biggest digital asset.