Latin America has historically been a region that has lagged behind in terms of banking, but it is also true that there has been a significant boom in fintech in recent years that has paved the way for major advances in digital banking. Bitso explained this in Spanish on top of his vision of crypto and financial inclusion with Cointelegraph.
On the other hand, they pointed out COVID-19 is having an impact and one of the major changes has been the way funds are paid and received. In an attempt to reduce the spread of the virus, digital payment methods have replaced cash and detected potentially permanent changes in user behavior.
From Bitso, they cited an October 2020 report by Mastercard and America Market Intelligence covering 13 countries in Latin America and the Caribbean, according to which only 45% of Latin Americans had made an online transaction before the pandemic, but that number has since grown to 83% gone up.
Bárbara González, Finance Director at Bitso, commented: “I am sure that freedom and economic independence are key elements to truly achieving financial inclusion in Latin America.” Where we have a population that has historically lagged behind and ignored by the traditional banking sector, and now the opportunities that cryptocurrencies offer us are directed towards making sure that it doesn’t matter where you live or who you are.
The company pointed out that this influx of millions of Latin Americans who previously did not have banks and now have accounts is undoubtedly a good sign for financial inclusion in the region and also for the cryptocurrency sector.
Daniel Vogel, CEO of Bitso, stated: “This growth has also been reflected in the increase in users and transactions within our platform. For example, in the last quarter of 2020, bits were processed at around $ 2.1 billion, which for us represents an 85% growth over the third quarter of 2020 with only a few months difference. TO
The cash consumption decreased
They also stated that from Bitso the use of cash, that was the predominant form of payment in the region before the pandemic, In the past few months, it has dropped significantly due to health security measures and social distancing.
The use of branches and ATMs decreased among consumers. 62% said using less cash due to COVID-19. This situation has enabled the rise of digital financial services based on cryptocurrency technology and also so called decentralized financing, which aims to build all the products and services we use in daily life on a decentralized blockchain in detail.
Nora Palladino, Product Marketing Manager at Bitso, also spoke about these issues, saying, “Although we first know that the first approach for most people is investing through Bitcoin, we are now seeing more use cases growing. In Argentina, for example, saving and storing value are very common use cases. as well as the payments that entrepreneurs make in their business through cryptocurrencies, as well as decentralized finance that offers infinite possibilities, such as stable coins like DAI tied to the value of the dollar.
Those of us who develop financial solutions need to understand not only the specific use case, but also the motivations and goals of our users. At Bitso, we have a responsibility to show our products in such a way that everyone has access to quality financial services and the technology is at the service of the people, ”he added.
In this context, they are of the opinion that in order to ensure a permanent change in user behavior with regard to digital financial services It will be crucial to take into account the high penetration rate of cellphones and smartphones in the region – over 70% and growing – to bring these new users easy-to-use and smooth digital tools to manage their finances. Well, platforms and apps that offer a seamless user experience can make a significant difference in retaining new users over the long term.
Andrea Gonzalez, Bitso Team Engineer, commented, “Within the React development team, we strive to create products that are really useful to people.”
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