Contrary to the expectations that remittance to Mexico will reduce as a result of the recent pandemic, Bitso, a Mexican exchange has been recording increased use of its platform.
According to projections from the Bitso research team, they expect that the volume of clients who use the platform for remittances will continue to increase. So far, they have managed to cover up to 10%, but the goal is to reach at least 20% of all cross-border transfers that cover the basic needs of 1.6 million Mexican households.
"One would think that Mexican immigrants in the United States would send fewer remittances to their families as a result of the coronavirus. But that is not what we have seen since Bitso," said Gabriela Belden, marketing leader at Bitso, during her participation in the Consensus podcast from CryptoNews.
The executive of the Mexican cryptocurrency platform shared that the exponential growth in the use of the platform for sending remittances derives from the alliance with Ripple and its liquidity on demand (ODL) product, used by Bitso under the business-to-business model*.*
However, the exchange still has to deal with several challenges that come with conducting cryptocurrency business in Mexico. According to Belden, there aren't many people that use cryptocurrencies in Mexico, compared to other South American countries like Argentina and Venezuela.
Several international financial organisations like the World Bank had stated that global remittance would reduce as a result of the pandemic. While this may be true for traditional remittance platforms, it seems like the few people who still do remittance now use cryptocurrencies and other digital platforms with lower transaction cost. This may be another catalyst for broader scale adoption of cryptocurrencies.
Source: Cryptonews
