Argentinian Bank Drops Out of SWIFT, Favors Bitcoin and Cryptocurrency

According to Toshi Times, Jose Dakak, the principal shareholder of Argentinian bank Banco Masventas, has stated that the bank will drop out from the global financial network SWIFT and begin utilizing the Bitcoin blockchain network to settle international payments.

Can Bitcoin Replace SWIFT?

Through a strategic partnership with Bitex, a cryptocurrency payment service provider based in South America, Dakak explained that the bank will outsource the conversion process of bitcoin to fiat currencies to Bitex, which will then send bitcoin to the recipient. The end cost would be the bitcoin transaction fee that is sent to the miners that verify transactions on the blockchain and the fee charged by Bitex.

“The service allows you to reduce costs associated with international transfers as there are no international banks as intermediaries,” said Banco Masventas.

Dakak noted that one of the initial actions the bank took to streamline the implementation process of bitcoin was to cooperate with the Bitex development team to ensure recipients of bitcoin payments can seamlessly receive cryptocurrency transactions without boundaries. Dakak stated:

“One of the actions was to contract Bitex as a strategic partner in the implementation of the Bitex platform for payments and collections operations for our clients abroad.”

The SWIFT network, which is utilized by the world’s biggest banks and financial institutions, is essentially a messaging network that enables banks to share information. Sending a payment from one bank to another requires a message to be sent on the SWIFT network, which has to be verified manually.

Sending international payments and remittance transactions on the SWIFT network can take at least five business days to three weeks, depending on the size of the payment. Because most international payments processed by banks are large, it often takes more than a week for the payment to be cleared.

argentina bitcoin
Source: Shutterstock

Bitcoin is not the most flexible blockchain network and it does not have the biggest capacity. But, it is the most robust blockchain protocol with the longest track record, equipped with one of the most active open-source development groups in the industry. Its transparency and security allow the Bitcoin network to operate as a reliable financial network for international payments.

Moreover, most international payments sent by banks, as stated above, are often large transactions that cannot be processed by remittance outlets. Although bitcoin transaction fees could be an issue for $1 to $10 payments, for payments above $1,000, the bitcoin transaction fee is a non-issue.

Why is SWIFT Still Used?

The SWIFT network is not only operated by leading banks by owned by the world’s biggest financial institutions. As such, even though the SWIFT network is outdated and utilizes an inferior technology, banks have the obligation to use it. That is, until minor banks like Bank Masventas opt out of the SWIFT network and begin to leverage public financial networks like bitcoin, which are completely decentralized and peer-to-peer.

Other banks have started to pilot blockchain protocols like Ripple and Ethereum to process international payments, which could be crucial in demonstrating the potential of cryptocurrency as an alternative to the global finance sector in the long-term.

Sweden Officially Backs a Cryptocurrency, Establishing It As Their Official Coin

It’s finally happened: a major government has just bestowed a huge vote of confidence and legitimacy onto the world of cryptocurrencies. Sweden, in an unprecedented move, just announced that they are officially adopting a certain cryptocurrency as Sweden’s official coin!

The Swedish government just informed us that they have chosen a preferred firm for the purchase and marketing of their new coin – Kryptonex Research Group. The sales of Sweden’s coin officially started on Saturday, May 19th and currently these coins can be bought only from Kryptonex Research Group.

Industry experts weren’t surprised when Kryptonex was chosen by Sweden as their preferred firm for the release of their official coin. They had all seen for their own eyes the cutting edge insight that Kryptonex had brought to the cryptocurrency markets for their clients.

For CryptoCoinHubs, , Kryptonex Research Group is not an unknown company as we’ve received dozens of e-mails from our readers

This is a firm that is widely known as the best in the industry for getting the information that is only available to a select few that lead them to be able to give their clients calls such as the 1734% rise in VEN, or the 540% rise in ETH, or the crazy 3204% increase in EMC2, and the list goes on and on.

The most astonishing part of this news may just be that a Kryptonex representative also informed us that the starting price for the official coin will be only €0.30 CENTS! That’s right, their coin is incredibly inexpensive in comparison to most other coins out there. Bitcoin for example trades at €9,000 at the time of this writing, and Ethereum, trades at around €700.

In fact we were able to get the famed billionaire investor Michael Soros’s thoughts on Sweden’s new coin and this is what he had to say:

Michael Soros states: “Anytime a major corporation announces even a small partnership with an individual cryptocurrency that coin’s value skyrockets. I can’t wait to see what happens when a government officially adopts a crypto. When the name of Sweden’s coin is released many people will become millionaires practically overnight.”

A few of us at CryptoCoinHubs were curious enough to buy a couple coins just to see how everything looks and what the trading fees are like.

It was fairly easy to get the coins, but I will show you the whole process below for those that are interested.

First step was to fill out all the details. As you can see, nothing complicated so far.

Second step, I was taken to a deposit page to fill out my details.

For €250, I received 757 coins at 0.33 cents each. You can see current value of my coins on the same page.

The whole process was simple and I even received a phone call from one of Kryptonex Research Group’s friendly agents, but I didn’t really need any help as the whole process was easy enough.

To my shock literally after about 4 hours of finishing this article I checked my wallet again to see this:

In only 4 hours, the price increased from €0.33 to €0.68. At this point, I was positively surprised. I may either hold onto the coins or flip them for another coin that the people at Kryptonex told me about which they predict will also increase in price by 4 times in less than 48 hours. Their track record speaks for itself, no wonder Sweden chose them.

Kryptonex Research Group was kind enough to give us a 100% accurate coin movement price counter, so everyone can see the increase directly on this page.

OFFICIAL PRICE CURRENTLY
1 COIN = €0.66 CENTS
(Note – price is being updated every 30 minutes)

With a story of this nature news seems to be breaking every so often, we’ll be sure to update the story as needed.

You can find their promo video as well as direct coin sales by clicking on the picture below.

China Ranks Ethereum as the World’s Best Blockchain Network, Bitcoin at #13

On May 17, China’s Ministry of Industry and Information Technology released its public blockchain ratings, ranking various blockchain projects like Ethereum in the global cryptocurrency sector based on three criteria: technology, application, and innovation.

Bitcoin at #13

As shown in the chart below, the Chinese government ranked Ethereum as the world’s best blockchain network at number 1. The top five included Ethereum, Steem, Lisk, NEO, and Komodo, all of which utilize smart contracts to efficiently and securely process information in a decentralized manner.

cnLedger@cnLedger
Replying to @cnLedger

3/ Full list:
1-5: #ETH, #STEEM, #LSK, #NEO, #KMD
6-10: #XLM, #ADA, #IOTA, #XMR, #STRAT
11-15: #QTUM, #BTS, #BTC, #XVG, #WAVES
16-20: #ETC, #XRP, #DASH, #SC, #BCN
21-25:#LTC, #ARK, #ZEC, #NANO, #BCH
26-28: #DCR, #HSR, #XEM

cnLedger@cnLedger

4/ Detailed scores of the first crypto ratings by CCID Research, China’s Ministry of Industry & Information Technology pic.twitter.com/7LiJIWokge

View image on Twitter

The addition of Steem in the top five rankings of the Chinese government’s blockchain network was unexpected by the community because unlike Lisk and NEO, Steem is not a base layer blockchain technology that can be used to create decentralized applications. Steem is a content distribution platform based on the blockchain with a primary purpose of distributing content. Essentially, Steem is like Reddit based on the decentralized blockchain.

Another surprising addition to its top 10 rankings was Monero at number 9, given that several governments including the Japanese government and its financial services agency (FSA) have expressed their concerns towards cryptocurrencies like Monero and Zcash that are capable of processing anonymous payments that could be associated with money laundering and criminal activities.

The cryptocurrency community was taken aback by the ranking of bitcoin at 13, which was co-ranked with privacy-focused cryptocurrency Verge. The bitcoin community was understandably outraged by the ranking of bitcoin at 13, considering that bitcoin has the longest track record as the most secure and dominant cryptocurrency in the global market.

The argument that bitcoin’s application is limited to a form of money and payment is illogical, as the Chinese government ranked Steem, which has a single application on its blockchain network that is a content distribution platform, as the 2nd best blockchain network behind Steem.

More importantly, bitcoin has one of the most active open source development communities in the global cryptocurrency sector and it has developed innovative technologies like Confidential Transactions (CT), Bulletproofs, and Lightning Network, which allows developers to enable private transactions, process micro-payments, and with solutions like RootStock, potentially allow bitcoin to function as an Ethereum-like smart contracts platform.

Exceeded Expectations

The majority of the cryptocurrency community expected the Chinese government to rank private blockchain networks and protocols that can assist the government in surveillance or monitoring transactions at the top. Hence, the ranking of the government which placed cryptocurrencies like Ethereum and Monero demonstrate the intent of the government to remain objective in its assessment.

However, analysts have stated that the Chinese government has overlooked the long track record, hashrate, computing power, and accumulated difficulty of major blockchain networks like bitcoin and prioritized next-generation blockchain networks instead.

Earlier this month, South China Morning Post, a major publication based in Hong Kong, reported that China’s public blockchain rankings were developed by China Center for Information Industry Development (CIID), an institute that works closely with the government to advise on policymaking in technology.

The high ranking of Ethereum and smart contract blockchain networks could influence the government to potentially allow some blockchain networks to operate in China.

HSBC Completes World’s First Blockchain Trade Finance Transaction

Financial services group HSBC said on Monday it had for the first time utilised blockchain technology to complete a speedy commercial trade finance transaction that normally takes around a week using normal paper-based processing mediums.

The transaction was the first time that a blockchain – the technology which powers cryptocurrencies such as bitcoin – has been used for a commercial trade finance settlement.

CNBC reported that HSBC had issued a letter of credit for U.S. food and agriculture firm Cargill. The settlement covers the movement of bulk soybeans to Malaysia from Argentina, with the letter of credit for this issued by ING, a Netherlands based financier.

HSBC said that it is excited about the development as the user case for blockchain gets traction and support from both private and public sector officials in major markets such as the United States and China.

“The need for paper reconciliation is removed because all parties are linked on the platform and updates are instantaneous. The quick turnaround could mean unlocking liquidity for businesses,” HSBC’s head of growth and innovation was quoted saying in a statement.

Blockchain is expected to improve efficiencies, improve transparency and cut on paper trails, thereby reducing lead times for processes such as letter of credit issuance. Letters of credit are a form of guarantee by a bank that payment for a transaction will be received.

Blockchain is heavily decentralised, with various parties to a transaction linked by computers accessing the same network, giving a ledger look which could be useful in the banking sector, say experts.

Reports say HSBC utilised the Corda blockchain platform developed by R3. The company,as CCN has reported, runs one of the world’s most popular blockchain banking consortiums.

The user case for blockchain in finance and banking has been strengthened by Poland, which has now moved to store banking records on a blockchain application. On Monday, technology company, Billon said it would implement “blockchain for storage and secure access to sensitive customer information” for the banking industry in the country.

Chinese Crypto Giant Huobi Launches Billion-Dollar Blockchain Fund

Huobi Labs, a blockchain incubator that is part of the Huobi exchange, has signed an agreement with Tianya Community to build a “Global Cultural and Creative Blockchain Lab” in Hainan Province, China, alongside the launch of a billion-dollar industry fund that aims to back the blockchain industry globally.

Under the background of the “new era of Chinese socialism characteristics,” the government has given Hainan Special Economic Zone a new mission of economic reformation. President Xi Jiping, personally planned, deployed and promoted the national strategy.

Huobi To Support National Strategy

Huobi China will support the national-level strategy and will use its technology, resources, talents and capital in the global blockchain industry to contribute to Hainan Special Economic Zone development and explore the construction of an international free trade port, the company announced on its website.

This year, the Huobi Group will:

1. Move Huobi China headquarters (Not Huobi Global, Nor Huobi Pro) to Hainan in the Hainan Ecological Software Park.
2. Build 10 global blockchain labs in collaboration with top global industry companies.
3. Build a global blockchain research institute with the world’s top universities.
4. Build a 40,000-square-meter blockchain incubator.
5. Create a billion-dollar global blockchain industry fund.

Huobi Seeks Government Partnership

Huobi was among China’s biggest cryptocurrency trading platforms prior to crippling domestic regulations that effectively curtailed the industry. After closing its Chinese trading platform in October, Huobi founder Leon Li summed up China’s curtain call as a “watershed moment” for the industry before launching Huobi Pro, its international trading platform headquartered in Singapore.

Huobi’s recent announcement to offer its own token, dubbed “Huobi Token” (HT), is another step in the former Chinese exchange giant’s diversification strategy, which includes an expansion into major cryptocurrency markets in South Korea and Japan.

The utility token is based on the Ethereum blockchain’s ERC-20 standard and will be capped at 500 million tokens. ‘Huobi Token, short for “HT”, is a token system based on Blockchain launching and management,’ the firm explained in a post on its website.