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A new service between China and Chile uses bitcoin ledger to transfer funds but does not require recipients or senders to purchase or store the digital currency. The blockchain acts as the back-end system.

The choice fell on Chile and China because of the developing economic connections between the two countries, including an agreement to expand free trade between the two nations. The volume of import from China to Chile continues to increase at a rate of more than 30% per year. The annual trade volume between the countries exceeds $20 billion with the major part being generated by the small and medium businesses. These businesses would benefit from using the blockchain-based remittances to reduce fees. BitNexo has established business networks in both countries. Among their partners is a trade organisation Wines of Chile, which promotes Chilean wine in other countries.

“There is a growing community of both Chinese people living in Chile and Chileans in China, businessmen, merchants and employees, who also need to transfer money to their homes and families in a fast and efficient way,” said BitNexo CEO Darren Camas.

“We use Bitcoin as our backend system to facilitate payments. The underlying technology is both fast and cheap, so we pass these savings on to our customers. There are a lot of other alternative cryptocurrencies and digital currencies out there and there are some amazing innovations coming out of this space. Bitcoin currently has first mover’s advantage and network effect in the cryptocurrency space, but I’ve met some people taking the groundwork laid in Bitcoin and coming up with a whole range of innovations. I´m excited to see what the future holds,” he added.

BitNexo released their first Private Beta service in April 2015 and graduated from the Chinaaccelerator programme in June, raising $60,000. The start-up is currently competing in the regional South American final of BBVA Open Talent start-up competition. BitNexo has established a partnership with meXBT, a trading platform for cryptocurrencies in Latin America. 

 

Aliona Chapel