Bitso, a Latam crypto platform with operations in Mexico, has expanded its services to Colombia. The exchange announced the introduction of remittance services in Colombia.
Hence, Colombian users can use the platform to receive and send remittances using USD-pegged stablecoins. In 2021, the platform introduced a comparable service in Mexico in collaboration with Circle.
Bitso Extends Its Remittance Program to Colombia
Recently, exchanges have adopted cryptocurrency as a tool for global money transfers. According to reports, a firm is set to offer remittance services in Colombia.
This company is Bitso, a Mexican-based exchange with offices in several LatAm nations. With this new service, Colombian users could receive and send money transfers.
Also, this will be done using digital currency on the exchange’s website. This service will concentrate on remittances sent to and from the United States.
The United States is among the nations where remittance services have substantially increased recently. Meanwhile, the company did not define how it would provide this solution.
However, this is similar to Bitso’s Shift project in Mexico. The project employs Circle’s USDC as a means of value transfer.
Moreover, the Shift program has been successful. It has processed over a billion Dollars worth of remittances in 2022 alone. This signifies a 400% hike over the exchange’s record in 2021.
Remittance Service Powered By Stablecoin
Notably, stablecoins are one of the foundations of Bitso’s remittance concept. Stablecoins will allow these transfers to occur without issues of volatility and instability.
Meanwhile, Bitso Colombia’s Manager, Emilio Pardo, noted that volatility wouldn’t affect the trades. This is because Bitso’s stablecoins’ prices depend on the international exchange market.
Also, they are USD-based stablecoins which is a major advantage for combating inflation. Bitso’s move is to capture a portion of the Colombian remittance industry.
It hopes to do this by providing crypto-based remittance services. These services would be better than that of other firms. Pardo stated that:
“We are happy to offer this service to the people. Our major goal is to make cryptocurrency useful. Doing so has many positive effects that make it easier and safer for Colombians to use cryptocurrency.”
Meanwhile, Bitso is among the platforms that have announced layoffs recently such as Coinbase. This is due to the ongoing market slump.
However, 2022 witnessed the company’s successful expansion into Colombia. The exchange offered yield-based goods to clients through its Bitso plus program in Colombia.