Analysts have discussed whether the digital currency bitcoin could ease friction in cross-border payments, but one startup is putting that theory to the test. BitNexo, which launched this year, offers remittance services that uses bitcoin to facilitate trade between China and Chile, and the company’s CEO Darren Camas recently spoke with reporters to discuss his progress.
According to reports, as China and Latin America strengthen their economic ties and heighten trade, they need a way to reconcile transactions, and foreign exchange processes can often prove challenging. BitNexo doesn’t use bitcoin to physically move money but instead uses it as a payment channel to have funds land in appropriate bank accounts, according to Brave New Coin reports.
Camas cofounded the business with Hector Garcia, both with ties to China and Chile and both with experience in using bitcoin. As export and import volume increases between the two nations, Camas said that businesses have already saved money by using BitNexo services.
“One of our first customers is an automotive dealer who bought a tire recycling plant in China and needs to pay expenses in RMB and sends multiple transfers every month,” Camas said. “We’re currently saving him about 40 percent in fees from what he was paying with wires.”
Reports said Chile and Latin America currently facilitate about $26 billion in cross-border trade between them, with trade from Chile to China strengthening by about 36 percent every year. With that in mind, BitNexo said that it saw a massive opportunity to ease payments between the two regions.
“BitNexo breaks down the barriers to bitcoin by managing the technological and financial knowhow to offer a simple solution to cross-border SMBs so a company can pay its overseas provider using its home currency and banking system. The customers never have to purchase, store or manage bitcoin,” the company says.
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