The cryptocurrency exchange launched the Bitso Shift cross-border payments solution, which leverages Circle’s infrastructure, including its stablecoin USDC.
Bitso, one of the main exchange of cryptocurrencies in Latin America, is integrating a solution of Circle to make it easier for residents of Mexico to send and receive payments to and from the United States.
Circle, the operating company of the stablecoin USDC announced in a statement Thursday the association with the exchange. According to the official announcement, Bitso is taking advantage of the infrastructure of Circle to launch a new cross-border payment tool.
Global economic prosperity is a key part of Circle’s mission. We’re excited to support @Bitso and help offer a more seamless cross-border exchange for individuals and small businesses between the US and Mexico ????https://t.co/HPRKTzqplQ
– Circle (@circlepay) November 18, 2021
Named Bitso Shift, the solution is designed to enhance currently available cross-border payment services, allowing companies and individuals that offer their products and services in the US to make and receive payments in cryptocurrencies instantly and at low costs. In this sense, the tool will make it easier for Mexicans to send and receive remittances.
Remittances from the United States are a crucial pillar for the economy of many Mexican families. According to data from the Central Bank of Mexico, andn 2020, the Central American country received USD $ 40,000 million in remittances from the United States. The figure represented an increase of 10% compared to the previous year, possibly due to the situation of the pandemic.
Bitso and Circle offer a solution for remittances between Mexico and the US
By incorporating the payment infrastructure of Circle, Bitso Shift will allow users to complete secure deposits and withdrawals via domestic bank transfers, make payments in the US or Mexico, and ultimately convert Mexican pesos (MXN) by stablecoins backed by US dollars, such as USDC.
In accordance with Bitso, access to bank accounts in US dollars is only available to Mexicans living in the northern border area of Mexico. This restriction affects individuals and companies in the rest of the country that seek to open accounts in dollars. On the other hand, Mexican citizens who do not have a bank account can deposit up to USD $ 300 per day and USD $ 1,500 per month, sAccording to the International Trade Administration of the US Department of Commerce.
The new product in partnership with Circle aims to offer easier access to the dollar for people in Mexico, as well as increase the transparency of transactions in USD in the country.
Bank transfers to Bitso Shift will take 24-48 hours to process, while in-app exchanges between US dollar-backed stablecoins and Mexican pesos will be processed in seconds, depending on Bitso. The company added that no minimum transaction volumes or minimum available balance amounts are required.
The co-founder and CEO of Circle, Jeremy Allaire, commented in this regard that he sees a great opportunity for the company “to be part of making cross-border exchanges seamless between the US and Mexico“. Meanwhile, the CEO of Bitso, Daniel Vogel added:
At Bitso, we believe that the borderless nature of cryptocurrencies can be harnessed to address some of the most pressing issues in the financial sector. We are very excited to partner with Circle to offer a low-cost, regulated product that will help Mexican individuals and businesses thrive in the global digital economy.
A good year for Bitso
Founded in 2014, Bitso is one of the largest cryptocurrency platforms in Latin America with more than 3 million users. The company, which currently operates in Mexico, Brazil and Argentina but has plans to expand into Colombia, has had a good year in terms of growth.
In May, Bitso raised its Series C financing round at a valuation of USD $ 2,200 million, becoming the the region’s first unicorn cryptocurrency company; that is, the first to exceed a valuation of 1,000 million dollars. The exchange also saw significant customer growth, tripling its user base of 1 million in July 2020.
More recently, the company secured an agreement with the Salvadoran government digital wallet, Billy Goat, to become the leading provider of services for Bitcoin of that platform.
Hannah Estefanía Pérez’s version / DailyBitcoin
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