Bitcoin payments firm Strike has expanded its cross-border payments service to Mexico, tapping into the country’s vast remittance market. As of June 14, 2023, the ‘Send Globally’ service is available in the third-largest country in Latin America, enabling users to send funds internationally with ease.
According to BBVA Research, Mexico is the largest payments market in the United States, with transfers to Mexican citizens accounting for approximately 95% of total remittances processed by Strike from overseas senders. This move ensures that U.S. dollars (USD) sent to the country via ‘Send Globally’ will be received as Mexican Pesos in the recipient’s bank account, solidifying Strike’s presence in Latin America.
This development comes on the heels of Strike CEO and co-founder Jack Mallers’ announcement that the company will bring its custody operations in-house. This strategic decision reduces reliance on intermediaries as service providers and is indicative of a broader trend in the cryptocurrency industry.
In pursuit of a global footprint, Strike has set up a headquarters in El Salvador for its international arm, while maintaining its primary headquarters in Chicago. The company’s ambitious plans aim to address the needs of 7 to 8 billion people worldwide. And with its expansion to Mexico, Strike claims to provide a better alternative to 12 million Mexican Americans.
This is particularly relevant for the growing number of Mexican migrants in the U.S. who face high fees, slow settlements, and a lack of innovation in incumbent cross-border payments services.
The ‘Send Globally’ service runs on the Lightning Network, a Layer-2 payment protocol built atop Bitcoin. Designed for cheap and fast transactions, the Lightning Network has become increasingly attractive for the remittance industry, especially when network congestion is a significant concern.
Case in point, the recent Binance exchange complaint regarding Bitcoin (BTC) network backlog highlights the need for scalable solutions like the Lightning Network.
Indeed, Argentina, another Latin American country, has recently introduced an online course to educate individuals about this payment protocol. This move demonstrates the growing acceptance of cryptocurrencies as countries and companies actively work on developing the necessary infrastructure to foster innovation.
While Strike’s expansion into Mexico appears to address a genuine need for more efficient remittance services, it’s essential to consider the broader implications of turning to cryptocurrencies for cross-border transactions. As the global financial landscape evolves, it remains crucial to strike a balance between fostering innovation and maintaining security and stability in the financial markets.
Source: Cryptonews
