According to the report, Bitex Chief Marketing Officer Manuel Beaudroit said that “The integration of Bitex into Bantotal program represents a major step in the breakthrough of blockchain technology in banking,”
Bantotal is said to be a known banking service provider based in Uruguay that services more than 60 different financial firms in 14 different countries, which a Bantotal spokesperson said that an estimated 20 million people use Bantotal’s money management services.
“Bantotal is one of the biggest banking providers in Latin America and is a huge player not just in Latin American but the greater Pacific,” said Sebastián Olivera, founder of the Uruguayan Fintech Chamber. “For me, Bitex provides a great solution for payments and they will be boosted by the structure and name of Bantotal.”
The partnership will enable Bantotal clients to access Bitex services in a marketplace of other traditional financial services that Bantotal offers through its BDevelopers program.
“With this technology, banks can have access to an API and have control of the whole process of [cross-border] payment with visibility and reliability on the bitcoin blockchain,” Beaudroit said.
Beaudroit claimed that average fees of cross-border payments are up to five times cheaper using Bitex than international wire transfers. adding that transfers are significantly faster, payment times for exporters between Argentina and Paraguay in one instance last February dropped from one month to one hour after switching to Bitex’s cross-border payment services.
The partnership in the eyes of competitors such as Stellar, which also specializes in cross-border payments leveraging its own blockchain network, is seen as a positive signal.
Commenting on the announcement, Stellar Development Foundation’s director of partnerships, Lisa Nestor had told the news outlet that: “We think this announcement further validates the value financial institutions are recognizing in digital assets and distributed ledger technology for executing core banking activities, like international payments. It’s also no coincidence these product partnerships are being launched in the [Latin American] market where cross-border payments, even in neighboring nations, can be slow and expensive.”