This article was first published on Insights – Ripple
Mexico’s economic uncertainty and volatile currency means that many Mexicans use US dollars to protect their assets. This is extremely difficult for the one-third of the country’s 125 million people who are unbanked, which explains why Mexico is now one of the world’s fastest-growing crypto markets.
“The big power of crypto is the democratization of access,” says Daniel. “[In Mexico] if you don’t earn over a certain amount of money, you’re just not interesting to [traditional] financial institutions. Crypto solves that problem.”
Though consumers and businesses want to store long-term value in dollars, their day-to-day spending still requires Mexican Pesos. Bitso uses Ripple’s On-Demand Liquidity (ODL) service to ensure customers can move money between currencies quickly and cost-effectively.
“We want to make sure that people can go in and out of crypto…seamlessly using our rails,” Daniel explains. “On-Demand Liquidity is a service that allows fiat currency conversion using crypto technology. In our case, we’re assisting in the conversion of US Dollars to Mexico Pesos where the digital asset XRP is a bridge currency. We’re processing close to 10% of the remittances from the US to Mexico through ODL.”
With more than one million users and an accelerating growth rate over the past year, Bitso is now Latin America’s leading crypto exchanges. But it hasn’t always been easy for the company that Daniel co-founded in 2014, especially given Mexico’s regulatory uncertainty for most of those intervening years.
“It’s been a long journey for us navigating the regulatory landscape in Mexico,” he recalls. “We’ve played a strong hand in shaping it as well. Today, Mexico has a…comprehensive set of regulations if you want to build ...
To keep reading, please go to the original article at:
Insights – Ripple