Important facts:
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The figures for sending remittances in Bitso have increased by 73% in the last year.
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Bitso, along with Ripple, believe that this number can increase significantly.
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Bitso, the Mexican cryptocurrency financial services company, tripled its profits in 2022 compared to the previous year. According to the company, this data would reflect the growing interest in using cryptocurrencies as a means of payment for remittances and international transfers in Latin America and the rest of the world at the expense of escrow funds.
Bitso reported that its Crypto for Companies service, a program involving more than 1,500 Latin American companies, saw 73% growth in the last year alone. Bitso further claimed that in 2022 $3.3 billion was moved between the United States and Mexico.
Most of this trading volume was due to remittance companies and payment processors affiliated with Bitso and based in one or both countries. Most of these transfers made through Bitso are in XRP and stablecoins.
Cryptocurrencies and not dollars as assets for transfers
“This shows that more and more companies or institutions are turning to crypto as a cross-border solution given the speed and low cost that crypto technology offers,” Bitso suggested in a recent publication press release.
According to Bitso, there are even bigger growth expectations in cross-border transactions for cryptocurrency remittances in 2023. This growth would have originated in the strategic alliances that Bitso has formed with companies like RippleXRP cryptocurrency issuer and focuses on enterprise cryptocurrency solutions.
“Through these alliances, more companies will be able to access crypto technology to move their funds to and from Mexico, and soon to more Latin American countries, instantly and cheaply,” the aforementioned press release reads.
Ripple’s CEO also commented on the prospects for future growth in the use of cryptocurrency payments for remittances in Latin America.
Our collaboration with Bitso allows us to continue offering unprecedented cross-border payments in Mexico, a key region for our customers. We are pleased with the significant growth in Bitso’s business and look forward to continuing our partnership to bring cryptocurrency-powered cross-border payments to more businesses across Latin America.
Aaron Sears, Managing Director of the Americas at Ripple.
Bitso’s vice president of product also had some reflections on the benefits of cryptocurrency transfers to move funds across borders.
We will continue to work to be a key ally for businesses trying to move their money more efficiently, in the shortest amount of time and at the lowest cost.
Santiago Alvarado, Vice President of Product and B2B at Bitso.
Accordingly, it is not only the American continent that is increasingly benefiting from this highest amount of cross-border payment channels with cryptocurrencies that exist since heTraditional global payment channels generally have several sources of error: International bank transfers can take up to five business days to complete. and assume costs of up to 4% of the total shipping amount.
Consequently, the advent of cryptocurrencies and their native networks can offer a globalized advantage, making distance and borders indifferent to international money transfers.