Claim: Governments and banks have used Bitcoin for cross-border payments and settlements.
Category: Use cases
My Stake: Back Claim (75 CRED)
The government of Argentina and Paraguay successfully settled a trade using Bitcoin:
Utilization of Bitcoin for transactions and settlements by major Argentinean institutions is not without precedent. Since 2018, an Argentinean bank has been using a service built on the Bitcoin network called “BITEX” as an alternative to the SWIFT network in an effort to reduce costs on cross-border payments.
According to the bank’s website, the service saves customers time and cost by eliminating payment intermediaries when making cross-border transactions:
Status: Confirmed. While the dollar amounts involved were quite small, the inter-governmental settlement payment was made using Bitcoin, before being converted into Argentinean pesos.
The adoption of Bitcoin for cross-border payments by an Argentinean bank in an effort to save costs and time is a promising data point for the one of the more popular cryptocurrency use-case narratives.