Competition is fierce and growing. This is confirmed by strategic alliances in the financial technology sector. Companies such as Wetern Union, Mercado Pago, PagoPhone, SmartPay and Broxel have even dropped their commissions on remittances.
However, the most popular cryptocurrency exchange in Latin America, Bitso, has gone a step further to increase competition and is betting on sending remittances with stablecoins (cryptocurrencies with a fixed price).
Stablecoins aim to avoid volatility as much as possible and provide users with a solid backing.
During the first half of 2022 alone, Bitso reflected more than US$1 billion in remittances. A figure equivalent to the volume that the platform operated during the entire year 2021.
Bárbara González Briseño, CEO of Bitso Mexico, declared that currently more than 10% of remittances from the United States to Mexico pass through the platform.
“That speaks of the great need that exists, for this segment, of users who need cheaper and more efficient options.” In addition, he highlighted the promising moment that stablecoins are experiencing in Latin America, thanks to the facilities of these cryptoassets.
A few weeks ago Bitso reached an alliance with Everest, a licensed cryptocurrency custodian that offers stablecoins, and together they seek to streamline transactions from the United States, Europe and Singapore to Mexico.