An advanced report issued by Binance reveals that the crypto exchange seeks to widen its market presence in Latin America by extending its offering. The August 30 report shows that the crypto exchange has officially launched a unique crypto-to-bank account to facilitate payment in LATAM.
The crypto exchange confirmed to have partnered with a regulated transfer provider in Latam to enhance the new product Send Cash performance.
Binance Launches Send Cash Platform
The Binance team explained that the Send Cash platform will enable users from the nine countries in Latam to send and receive crypto assets through their respective banks. In the report, the Binance team underlined that users from Guatemala, Argentina, Honduras, Colombia, the Dominican Republic, Paraguay, Costa Rica, and Mexico could access the Send Cash platform.
The Binance team advised the users from the countries mentioned above to use the Binance Pay to transfer funds to bank accounts registered in Colombia and Argentina. The Binance Pay has recently witnessed high adoption from users from Africa, Europe, and Asia. The increased demand for Binance products signals that customers are seeking for a convenient, reliable, and transparent payment method.
From 2021, the Binance Pay platform has managed to onboard over 30 million investors in the retail and institutional sectors. In an exclusive interview with the vice president of Binance Latin America, Min Lin confessed that the crypto exchange has invested in developing new crypto use cases to solve real-life challenges.
Binance Renew its Commitment to Expand to Latam
The executive was pleased to announce that the Latam has a growing tech-savvy population supporting the advancement in innovation. In the report, the official opined that Latin America believes invention has massive potential to tackle real-life challenges.
According to research by the World Bank, in 2021, approximately 42% of adults were unbanked. Lin added that the launch of the Cash Send marks a significant milestone for Binance to bolster financial inclusivity in the region. The official admitted that financial inclusivity is a vehicle that stimulates economic growth.
Despite the growth of innovation in Latam, the region ranks among the countries with a spiking inflation. A recent study demonstrated that inflation in Latin America is primary driver towards crypto adoption. The research revealed that Argentina ranks fourth globally with the highest inflation.
Consecutively, Venezuela’s inflation rate reached 398% a few months ago. Per Trading Economics data, inflation has doubled in countries such as Haiti, Cuba, and Colombia.
Inflation in Latin America
The high inflation in the region has compelled Latin Americans to reevaluate measures to control inflation. Some of the strategies adopted in Latam to reduce inflation included tokenizing assets, developing remittance infrastructures, and improving cross-border payments.
The adoption of this measures has fueled growth in crypto activities in Latam. According to Chainanalysis, crypto activities in Latam generated approximately $562 billion between July 2021 and June 2022, a 40% increase from the previous year. Beyond this, the suitability of the Latin America crypto market has attracted industrial heavyweights to expand to the region.
On August 29, Circle revealed plans to expand to Latam through a strategic partnership with Mecardo Libre. The partners plan to introduce Circle’s stablecoin, USD Coin (USDC), to the vibrant market in Latam. Circle and Mecardo announced plans to start issuing USDC in Chile in the report.