Bitso, a cryptocurrency exchange based in Mexico and operating in Latam, has announced the launch of its money transfer service in Colombia. The company will now allow its Colombian customers to send and receive remittances using dollar-pegged stablecoins on its platform. The exchange launched a similar service in Mexico last year in partnership with Circle.
Bitsoo Expands Remittance Program to Colombia
Exchanges are embracing crypto as a useful tool for transferring value across borders. Bitso, a Mexico-based exchange with operations in several latam countries,announced this weekthe launch of its money transfer service in Colombia. The new service will allow Colombian users to send and receive money using digital dollars on the exchange’s platform.
The service will focus on remittances from and to the U.S. The exchange said that the U.S. was one of the destinations that saw significant growth in remittances during the past year. The company has not disclosed how this service will be offered, but it is similar to Bitso’s Shift initiative, which uses Circle’s usd coins (USDC) as a means of transferring value in Mexico.
The Shift initiative has had considerable success in Mexico, reaching a volume of 1 billion remittances processed this year alone. This represents a 400% increase over the amount the company processed last year.
Stable Coin Powered
One of the pillars of Bitso’s remittance proposal has to do with stable coins, which allow these remittances to pass through without having to worry about volatility and losing value in the process. In this regard, Emilio Pardo, Bitso’s manager in Colombia, said,:
These transactions are not affected by volatility at all. The price of the stablecoin we use depends on the international currency market and has parity with the dollar, a great advantage to beat inflation.
Bitso’s move is aimed at capturing a relevant part of the Colombian remittance market and offering the advantages that crypto-based remittances present compared to other companies. In this regard, Pardo states,:
We are very excited to launch this service in the country. Our main goal is to make crypto convenient and it will be of great benefit to Colombians to be able to use digital money safely.
Bitso is one of the exchanges that recently announced a series of layoffs due to the recession the market experienced. However, the company has successfully expanded into Colombia this year and also offers yield-based products through its Bitso+ program.
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