Bitso, a bitcoin exchange based in Mexico, was able to secure a seed-funding round from the Digital Currency Group and angel investors in the country. The exchange plans to expand in Mexico and collaborate with the Mexican government’s current approach to cross-border payments in the region.
In the country, there are very few people who have access to bank accounts or credit cards, which means that alternative forms of fund transfer are welcomed. The Mexican government has already launched an initiative called Transfer, which also works with Mexican banks and corporations including Banamex, Inbursa, Telcel and Oxxo.
Bitcoin Exchange Prospects
Bitso plans to provide the nation with a cheaper yet robust mobile payment platform by connecting its bitcoin exchange with Transfer. The joint project of Transfer and Bitso could allow users to send pesos using bitcoin to more than 100 million cell phones in Mexico. The receivers can withdraw cash at Banamex or Inbursa ATMs, creating a nationwide network of bitcoin withdrawal locations and fostering national bitcoin adoption.
“Whether you are talking about new payments services that help facilitate faster and cheaper money transfers across the world’s most active remittance corridor, or mobile money and microfinance opportunities for Mexico’s underbanked consumers, bitcoin and blockchain technology is poised to transform financial services in Mexico and all of Latin America,” said Barry Silbert, who heads the Digital Currency Group.
“Bitso is well-positioned to emerge as the region’s leader in bitcoin exchange and payments, and we are thrilled to partner with them to help build a big, important company in this emerging industry,” he added.
Bitso was launched last year and became one of the most prominent bitcoin exchange companies in the region. The exchange features top-tier security standards and a strong focus on regulatory compliance, allowing it to compete against Mexico’s leading exchanges like Volabit and meXBT.