Paraguay settles export debt to Argentina in Bitcoin

In a first for both countries, Paraguay has settled an export deal with Argentina using Bitcoin (BTC).

The deal involved Paraguay buying pesticides and fumigation products worth $7,100 from an Argentinian supplier. After the crypto payment was made using Bitcoin, it was then converted into Argentine pesos to settle the accounts with the local exporter of the products.

To process the payments, Argentina applied to Bitex. Bitex is a Latin American financial services provider that supports Bitcoin payments for its clients.

Manuel Beaudroit, chief marketing strategist at Bitex, explained that “the company is part of the Argentine government’s program Exporta Simple, which facilitates the exports of goods and services under the sum of $15,000.”

Using a ‘stable’ currency

Even though the deal involved a Bitcoin transaction, the Argentine peso has shown a higher level of volatility over the last 12 months than its crypto compatriot. In 2018, Argentina’s inflation rate of 47% was the highest the country has ever recorded since 1991 (when inflation hit 84%).

This deal represents the first ever reported national export deal that has been legally settled in Bitcoin (with eventual conversion to pesos). Even though the value of goods was relatively low, the fact that the deal was completed under the ‘Exporta Simple’ program shows that inflation-stricken South American nations still want to find ways to facilitate cross-border trade.