Bitso, a major Latin American cryptocurrency exchange, is teaming up with a US dollar (USDC) stackecoin operator to launch a new tool for cross-border payments between Mexico and the United States.
The company announced on Thursday that the integration with Circle’s payment solutions aims to give Mexicans a new way to send and receive payments in and out of the United States.
A new tool called Bitso Shift uses cryptocurrency to offer affordable and instant cross-border payments available 24/7, allowing users to instantly switch between Mexican pesos and USD-backed stack coins.
The new proposal aims to open up easier and cheaper access to US dollars for individuals in Mexico, while increasing the transparency of US dollar transactions in the country.
According to the US Department of International Trade, Mexican nationals who do not have an account are allowed to deposit up to $ 300 per day, but no more than $ 1500 per month. Account holders can deposit as little as $ 4,000 per month. At the same time, it was reported that there are no rules for the transfer of US dollars to or outside Mexico.
“Bank transfers on Bitso Shift are processed within 24 to 48 hours through fully regulated institutions,” Bitso said in a statement. The company did not immediately respond to Cointelegraph’s request for comment.
“The potential for Circle and the USDC to be part of a seamless cross-border exchange between the United States and Mexico – the world’s largest exchange corridor – is enormous,” said Jeremy Aller, Circle’s co-founder and CEO.
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Bitso co-founder and CEO Daniel Vogel noted that the new proposal aims to support self-employed and Mexican companies by addressing some of the “most pressing issues in the financial sector.”
Bitso, founded in 2014, is one of the largest cryptocurrency platforms in Latin America, backed by major cryptocurrency companies such as the US cryptocurrency exchange Coinbase and Ripple. Bitso is the primary cryptocurrency service provider for El Salvador’s official Bitcoin wallet (BTC) known as Chivo. The exchange’s user base has almost tripled from 1 million users in July 2020 to almost 3 million users by September 2021.