Bitso, an operating cryptocurrency exchange based in Mexico and Latam, has announced that it will launch a Colombian remittance services. It will allow customers to send and get remittances in Colombia using the platform’s stablecoins, which are dollar-pegged. Circle and the Exchange launched an identical service last year for Mexico.
Bitso Expands Remittances Programs to Colombia
Crypto is being used by exchanges to transact value between countries. Bitso, an exchange based in Mexico that operates in multiple countries in Latam has launched this week a Colombian-based remittance program. These new services will allow Colombians to send and get remittances via digital dollars through the platform.
The service will be focused on remittances sent from and to the U.S., and according to the exchange, it’s one of the destinations where remittances sent experienced significant growth during the last year. While the company did not specify in which way this service will be offered, it is similar to Bitso’s Shift initiative, which uses Circle’s usd coin (USDC) as a vehicle to transfer value in Mexico.
Mexico has seen great success with the Shift Initiative, which reached a total of 1 billion in remittances last year. This is an increase of 400% compared to what the company did last year.
Stablecoin is Powered
One of the pillars of Bitso’s remittance proposal has to do with stablecoins, which allow these transfers to go through without worrying about volatility and losing value in the process. Emilio Pardo is the manager at Bitso Colombia.
These transactions do not experience volatility. Stablecoin prices are determined by the currency exchange, which is parity with USD, which has a huge advantage over inflation.
Bitso’s move aims to capture a relevant part of the Colombian remittance market, offering the benefits that crypto-based remittances present when compared to other companies. Pardo said:
This service will be available in Colombia very soon. This service will allow Colombians to use crypto safely and makes it more useful.
Bitso was one of many exchanges to announce layoffs in response to market downturn. The company has expanded to Colombia successfully this year and now offers yield-based products through its Bitso+ program.
What do you think about Bitso’s new remittance program in Colombia? Please leave your comments below.
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