Bitso, a cryptocurrency exchange operating in Latam based in Mexico, has announced that it is launching a remittance service in Colombia. The company will now allow its customers in Colombia to send and receive remittances using dollar-pegged stablecoins on the platform. The exchange launched a similar service in Mexico last year in partnership with Circle.
Bitso expands remittance program to Colombia
Exchanges are embracing crypto as a useful tool for transferring value across borders. Bitso, an exchange based in Mexico and operating in several Latam countries, announced the launch of a remittance service in Colombia this week. With these new services, Colombian users will be able to send and receive funds using digital dollars on the exchange’s platform.
The service will focus on remittances sent to and from the United States, and according to the exchange, it is one of the destinations where remittances sent have seen significant growth over the past year. While the company hasn’t specified how this service will be offered, it’s similar to Bitso’s Shift initiative, which uses Circle’s USD coin (USDC) as a vehicle to transfer value to Mexico.
The Shift initiative has had considerable success in Mexico, reaching a billion dollars in remittances processed this year alone. This represents a 400% increase over what the company processed last year.
Powered by Stablecoin
One of the pillars of Bitso’s remittance proposition is stablecoins, which allow these transfers to take place without worrying about volatility and losing value in the process. Regarding this, Emilio Pardo, director of Bitso in Colombia, said:
These trades are not affected by volatility at all. The price of the stablecoins we use depends on the international currency market, with parity with the dollar, a great advantage to beat inflation.
Bitso’s move aims to capture a relevant part of the Colombian remittance market, offering the advantages of crypto-based remittances over other companies. On this, Pardo said:
We are very happy to launch this service in the country. Our main goal is to make crypto useful, which brings great benefits for Colombians to use their digital money safely.
Bitso is one of the exchanges that recently announced a series of layoffs due to the market downturn. However, the company has successfully expanded into Colombia this year, where it also offers performance-based products with its Bitso+ program.
What do you think of Bitso’s new remittance program in Colombia? Tell us in the comments section below.
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