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Ripple-backed cryptocurrency exchange Bitso hit 1 million users prior to its upcoming launch in Brazil

This week, one of the biggest cryptocurrency exchanges in Latin America, Bitso, claims to have over one million registered users of its cryptocurrency platform. So what is behind the dramatic increase in Bitso users?

Bitso reached 1 million users before launching in Brazil

Pablo González, Daniel Vogel, and Ben Peters founded startup Bitso as a way to boost finance. They have realized that with Mexico’s large population, there may be a more accessible alternative via cryptocurrency.

They officially launched the Bitso platform in 2014. Through it, users can complete transfers, as well as buy or sell cryptocurrencies. So far, it has raised more than $ 4 million in funding, and it is steadily growing.

After rolling out service in Argentina in February 2020, Bitso has already become the biggest crypto exchange in the country as well. Besides operating in Mexico, this year, it has expanded to Argentina, a country interested in cryptocurrencies.

Santiago Alvarado, director of cross-border payments at Bitso, discussed the latest developments in leveraging cryptocurrencies for cross-border payments in Latin America. The discussion was attended by Ripple product manager Craig DeWitt and Prysm Group Cataldo.

Alvarado stated:

“Bitso reached a major milestone by hitting a one million user market last week. After topping Mexican and Argentinian crypto markets, Bitso is now expecting to enter Brazil.”

Interestingly, Bitso is becoming an active player in money flows from the United States to Mexico. Furthermore, the startup stated that it had experienced an increase in money transfers during the coronavirus pandemic. Bitso attributes this success to the alliance with Ripple. By working on its blockchain network, Bitso says transactions are processed at a much faster rate.

As planned in the future, Bitso aims to account for 20% of remittances to Mexico from the United States. But to achieve such a goal, it will first have to lay some ground.

Gabriela Belden, Marketing Manager at Bitso, stated:

“In Mexico, we don’t have as many people using cryptocurrencies as the population in Argentina or Venezuela do. We want to bring some education to Mexicans and present this technology so they may use it as they like.”

While overcoming these types of barriers can deplete a startup’s resources, if it proves successful, Bitso can reach a much larger group of users.

Latin America thrives on cryptocurrency

Bitso’s success in Argentina is connected to unique cryptocurrency activity, and the need for cross-border payment in the local market is increasing. Moreover, the rapid pace of adoption of cryptocurrencies in Latin America is the result of the growing development of distribution infrastructure and the rapid growth of smartphone ownership.

In Latin America, about 50% or 60% of the population has a bank account. Still, nearly 80% have a smartphone, which is a key factor for the considerable improvement in financial service delivery in this country.

Over the past week, Argentina has traded 92 Bitcoins on LocalBitcoin – the most significant amount to be traded on exchanges in Argentina since 2016. According to data from Coin Dance, the equivalent of more than 100 million Argentine pesos – huge amount Most local currencies have ever been traded against BTC.

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