Bitso Has Processed $1B in Mexico-US Crypto Remittances in 2022
According to a recent report, Bitso has processed $1B in crypto remittances between Mexico and the US so far in 2022. The company is hopeful that they can capture 10% of global money transfers to Latin American countries by 2023, which is up from their current 4%.
This news comes on the heels of other reports stating that the use of cryptocurrency for remittances is on the rise. For example, WorldRemit processed $1.8B in cross-border transactions in 2020, with $700M of that being in cryptocurrency. Ripple has also reported similar numbers, with $500M being sent through its platform last year.
With more and more people using cryptocurrency for remittances, it is evident that this trend is here to stay. Bitso hopes to capitalize on this by becoming one of the leading providers of such services. Only time will tell if they are successful in their endeavors.
The company said Bitso’s success in handling crypto remittances is due to its compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations. The exchange has also built up relationships with major banks and financial institutions in Mexico, which has helped it gain a large share of the country’s crypto remittance market.
Bitso plans to expand its services to other countries in Latin America, as well as Europe and Asia. The company plans to offer more fiat-to-crypto pairs on its platform.
Bitso has seen tremendous growth in recent years, expanding its user base to 5 million in June. Despite this success, the company has faced some challenges, most notably having to lay off 80 employees due to “long-term business strategy.”
While Bitso has not mentioned any difficulties in raising capital, the lay-offs suggest that there may be some financial trouble brewing behind the scenes. Only time will tell how Bitso will weather these challenges, but for now, it remains a leading player in the Latin American crypto market.
The partnership between Bitso and Circle
The partnership between Bitso and Circle is a game-changer for Mexican small businesses and freelancers. For the first time, these groups will be able to change their dollars into stablecoins and then convert them to Mexican pesos. This will allow them to avoid the volatility of the peso and make it easier to do business with international clients.
The process is simple: businesses and freelancers can sign up for an account on the Bitso website, deposit their dollars, and then convert them into either USDC or PAX. From there, they can withdraw their pesos into a bank account or use them to pay bills directly through the Bitso app.
This new product has the potential to revolutionize how Mexican businesses operate by giving them more stability and predictability in their finances. It also opens up new opportunities for freelancers, who can now tap into a global market of clients without worrying about exchange rate fluctuations.