Cryptocurrency exchange Binance is broadening its reach in Latin America with the introduction of a novel crypto-to-bank account payment scheme. This new product named ‘Send Cash’ is in collaboration with licensed transfer processing providers. Users in nine Latin American countries now have the option to transfer their crypto funds directly into bank accounts.
These countries include Colombia, Honduras, Guatemala, Argentina, Costa Rica, Paraguay, the Dominican Republic, Panama, and Mexico. The users in these nations can use Binance Pay to send funds to recipients in Argentina and Colombia. Binance Pay, already popular in Africa, Asia, and Eastern Europe, is the exchange’s native crypto payment technology platform.
Binance‘s regional vice president for Latin America, Min Lin, expressed that the aim of this initiative is to develop new crypto use cases “in everyday life”. He also stated an openness in the region to embrace such innovations to overcome specific challenges.
A 2021 World Bank study was highlighted by Binance, revealing that 42% of adults in Latin America still lack access to a bank account. Cryptocurrency has been a preferred solution for remittances in the region, and its adoption rates are steadily increasing, especially in light of rampant inflation in several Latin American countries.
However, the journey hasn’t been completely smooth for Binance in the region. On Aug. 24, it announced the suspension of its crypto debit card services. In the meantime, stablecoin issuer Circle revealed a partnership on Aug. 29 with LATAM’s largest fintech firm Mercado Pago to debut the stablecoin USD Coin in Chile.
Despite these fluctuations, both the opportunities and challenges of leveraging crypto as a mainstream financial instrument in Latin America are clear. While crypto can present a potential solution to the financial exclusion experienced by a significant percentage of the population, regulatory hurdles and persistent volatility also persist as evident barriers to adoption.
Thus, while innovations such as Binance’s Send Cash highlight the boundless potential of crypto, they also underline that the path towards full adoption will not be without its hurdles. As the region adapts and evolves, it will be interesting to watch how Latin America navigates the turbulent, yet exciting world of cryptocurrency.
Source: Cointelegraph
