The Mexican crypto startup plans to make cash remittances cheaper

Bitso says it will help the financial services cut the costs

01.12.2021 - 11:25

646

1 min

What’s new? Bitso, a Mexico City-based cryptocurrency trading platform, has announced the launch of the Bitso API technology, which helps to exchange data between applications and the money transfer services, Bloomberg reports.

Material on the Bloomberg website

Who is involved in the project? One of the companies involved in this project is Bridge21, a US firm that has been using cryptocurrency for money transfers to Mexico since 2016. The company's chief executive, Will Madden, stated:

“Depending on the cryptocurrency you use it can take minutes or even seconds to move the money as opposed to days.”

How can the technology help? The cash remittances remain a huge source of revenue for the Mexican economy, accounting for almost 4% of the country's GDP. 95% of the remittances are made by Mexican immigrants from the USA. According to the World Bank, in the first quarter of 2021, the average cost of sending $200 from the USA to Mexico was $7,29, or 3,65%. Bitso says it will be able to reduce the fee to almost 0,5%.

Author: