Circle and Bitso have completed a cross-border payment transaction, making it possible to send money from Mexico to the United States using Bitcoin. This is significant because of the potential for a free flow of currency between countries that could help end high inflation rates in both nations.
A collaboration between Bitso and Circle will allow customers to pay for goods with bitcoin. The partnership is a first of its kind, as it uses the blockchain technology behind cryptocurrencies rather than traditional banking systems.
Bitso and Circle are two cryptocurrency exchanges that work on crypto payments between Mexico and US. The Mexican government is currently working on regulations for cryptocurrencies.
Bitso, a large Latin American cryptocurrency exchange, is teaming up with Circle, the operator of the USD Coin (USDC) stablecoin, to establish a new cross-border payment service between Mexico and the United States.
The firm stated on Thursday that the connection with Circle payment solutions would provide Mexicans a new way to make and receive money to and from the United States.
The new Bitso Shift service leverages cryptocurrency to provide low-cost and quick cross-border payments that are accessible 24 hours a day, seven days a week, enabling users to instantaneously switch between Mexican pesos and stablecoins backed by the US dollar (USD).
The new service aims to provide citizens in Mexico with quicker and more economical access to the US dollar while also increasing the transparency of USD transactions in the nation.
Non-account holders in Mexico may deposit up to $300 per day, but no more than $1,500 per month, according to the US Department of Commerce’s International Trade Administration. Monthly deposits are limited to $4,000 per account. At the same time, the flow of US funds into and out of Mexico is said to be unrestricted.
Bitso said in the release that “wire transfers to Bitso Shift are completed in twenty-four to forty-eight hours via properly regulated institutions.” The company did not immediately react to a request for comment from Cointelegraph.
Circle co-founder and CEO Jeremy Allaire stated, “The potential for Circle and USDC to be a part of making cross-border trades smooth between the United States and Mexico – the world’s biggest exchange corridor — is immense.”
Related: According to Uphold CEO, Latin America stands to profit the most from cryptocurrency.
The new product, according to Bitso co-founder and CEO Daniel Vogel, intends to help Mexican freelancers and enterprises by tackling some of the “financial sector’s most urgent concerns.”
Bitso, which was founded in 2014 and is supported by significant crypto businesses such as Coinbase and Ripple, is one of the largest cryptocurrency platforms in Latin America. Bitso is the primary crypto service provider for Chivo, El Salvador’s official Bitcoin (BTC) wallet. By September 2021, the exchange’s user population had almost quadrupled, from 1 million in July 2020 to over 3 million.
Bitso and Circle are the two companies that have recently announced their plan to work on crypto payments between Mexico and US. Bitso is a Mexican cryptocurrency exchange, while Circle is an American company. The two companies are working together to make this possible by using blockchain technology. Reference: bitso valuation.
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