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Bitex Partners With Bantotal For More Cross-Border Payments in Latin America

BTC exchange Bitex has partnered with Uruguay-based financial software company Bantotal to expand its cross-border payments offerings in Latin America.

Bitcoin (BTC) exchange Bitex has partnered with Uruguay-based financial software company Bantotal in order to expand it cross-border payments system on the Bitcoin blockchain to Latin America.

CoinDesk announced the companies’ new partnership in a report on Aug. 13. According to the report, the upshot of this partnership is that Bantotal’s clients will have access to Bitex’s exchange services via a marketplace that hosts traditional financial services in its BDevelopers program.

Per the report, Bitex will act as a middleman service for cross-border payments. The exchange’s role is to convert from fiat currency to BTC, and then back to fiat again in order to facilitate these cross-border transactions.

Manuel Beaudroit, the chief marketer at Bitex, explained:

“If I want to do a payment from Argentina to Chile, I don’t need to buy dollars with the Argentinian pesos then transfer the dollars to the U.S. then move the dollars to Chile and exchange them into Chilean pesos […] I can just send a payment from Argentina to Chile directly.”

Bitcoin Argentina VP Leo Elduayen reportedly thinks that this partnership will majorly boost Bitex participation from within Latin America. According to the report, Bantotal provides services to over 60 financial institutions ranging across 14 countries, and a spokesperson estimated that 20 million people use the company’s money management services.

Bitex in Argentina

As previously reported by Cointelegraph, Bitex similarly partnered with an Argentina-based bank — Argentinian Banco Masventas (BMV) — back in May. As stated in the report, Bitex partnered with BMV in order to allow its clients to conduct cross-border payments.

José Humberto Dakak, a principal shareholder at BMV, apparently commented that the bank hopes to improve its digital and smartphone-based services with the partnership. He further remarked:

“One of the initiatives is to use Bitex as a strategic partner to provide our overseas customers with payment and collection services at the Bitex Exchange.”

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Uruguay's Central Bank Announces New Digital Currency Pilot

Uruguay is the latest country to see its central bank start experimenting with its own digital currency, according to statements.

The Banco Central del Uruguay (BDC) announced Wednesday that a limited number of users would help testing a mobile-based app for the transfer of funds.

Speaking at an event called “The Future of Money and the Financial System,” BCD President Mario Bergara said that the digital currency would function like cash, allowing for balances to be passed between individuals.

According to a report from the Latin American Herald Tribune, he explained:

“It’s not that you use the phone to order money transfers, as is done today, but having bills in the cellular and being able to pass them on from one user to another.”

Whether the digital currency will run on a blockchain-based platform is still not clear, but central banks around the world, including those in Canada and the U.K., have looked to the technology during similar trials.

While no launch date was announced, the pilot is “fairly close” to launch, according to Bergara, with certain technological aspects of the program still to be finalized.

“It will be a process of trial and error, success and failures,” he was quoted as saying.

Central banks around the world have been researching new ways of issuing their own digital currencies, including via distributed ledgers. Earlier this month, a researcher for the Bank of England published a blog on the subject, arguing that, regardless of its underlying technology, a central bank-issued digital currency would need “extraordinary” levels of resilience to be successful.

Uruguay bank notes image via Shutterstock

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