Banco Bisa, one of Bolivia’s largest banks, announced last week the launch of its crypto custody service, making it the first regulated financial institution in the country to do so.
Solely supporting the stablecoin Tether (USDT), the service enables customers to buy, sell, and transfer crypto directly through their bank accounts, local media reported Thursday.
It follows a weakening currency in Andean countries. Last month, inflation in the country hit its highest point in nearly 10 years, driving up the demand for U.S. dollars.
Ripple Expands Latin American Reach With Payments Launch in Brazil via Mercado Bitcoin
Fintech giant Ripple announced Thursday that it is launching its high-speed payment solution, Ripple Payments, in Brazil as it aims to broaden its reach across South America. Brazilian crypto exchange Mercado Bitcoin will be the first to use Ripple’s blockchain payments solution in a bid to speed up cross-border transactions. Other businesses will be allowed to tap the technology sometime in the future, according to a statement. Formerly known as RippleNet, Ripple Payments is the fintech’s bloc...
Banco Bisa’s vice president of business, Franco Urquidi, told local press at the time the function would allow people to send money to relatives abroad.
“Our clients go through a rigorous verification process, giving them peace of mind that their transactions are carried out through secure and reliable channels,” Urquidi said, per a rough translation of local media reports.
The service allows customers to store USDT indefinitely, transfer funds abroad, and facilitate payments for family members studying overseas.
USDT is the largest stablecoin by market capitalization and the backbone of the crypto economy, mainly because it is so widely used by traders to enter and exit trades.
Stablecoins are a type of digital token pegged to a currency or commodity—typically U.S. dollars or gold.
Latin American Crypto Scene Shows No Signs of Stopping: Report
The bear market may have primarily struck the global north. According to a joint report published today by the University of Cambridge and the Inter-American Development Bank, the Latin American and Caribbean region—the LAC—saw significant growth from 2020 to 2022. Between June and August last year, a combination of 80 private enterprises and public sector institutions were surveyed, spawning the “Cryptoasset Ecosystem in Latin America and the Caribbean” report. The analysis crunched data from...
It’s unclear whether Banco Bisa’s service will be available for everyday transactions at local merchants. The bank did not immediately respond to a request for comment.
In any case, the service starts at 200 USDT up to a daily limit of 10,000 USDT, with fees ranging between 35 (US$5.07) and 100 bolivianos ($US14.48). Transfers to U.S. dollar accounts abroad incur a charge of 280 bolivianos (US$40.55), per the reports.
By Latin American standards, Bolivia is a quiet nation in terms of crypto adoption: Bitcoin miners aren’t eyeing up the landlocked country like they are in Paraguay, and the asset class’ reception is nothing compared to neighboring Brazil or Argentina.
The country also doesn’t receive anywhere near the amount of crypto via remittances that other nations in the region do, Chainalysis has found.
Edited by Sebastian Sinclair
Daily Debrief Newsletter
