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Virtual exchange Bitso eyes opportunities in remittances

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Virtual exchange Bitso eyes opportunities in remittances

Mexican cryptocurrency exchange Bitso SAPI de CV seeks to broaden the use of bitcoin for remittance payments to the country, El Economista reported, citing co-founder Pablo González.

This year, Bitso looks to add a remittance feature in its platform, since the creators of the platform consider that using virtual assets for transmitting money simplifies the transfer process and eliminates costs related with intermediaries.

More than $30 billion in remittances are sent from the U.S. to the Mexico every year, González said, adding that 0.02% of the total volume are already moved through virtual assets, especially bitcoin. "The remittances flow from the U.S. to Mexico is the greatest in the world," he explained.

Although usage of cryptocurrencies in Mexico has increased, virtual assets have yet to be adopted as a payment method in the country's commercial establishments, González said.

Bitso currently has 650,000 registered users in its platform, doubling the level it recorded in the first half of 2017. It registers an average of 7,000 payments at merchants that accept virtual assets as a means of payment.

According to Allan Cassis, president of the Asociación Blockchain México group, they are working on a proposal for Banco de México that seeks to strengthen regulation on virtual assets. In March, the central bank issued general provisions on the operation of virtual assets that apply to banks and regulated financial technology platforms.

Secondary regulations on virtual assets will focus on private blockchains, where operation of cryptocurrencies are made, Cassis said.