In six months, this is according to Bitso
Mexico: The average weekly volume of remittances so far in 2020 is 715 million dollars.
Sending remittances with cryptocurrencies increased 320 percent in six months, according to the Bitso platform. This was reported by El Heraldo de México, on May 21.
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6% of remittances sent from the US to Mexico in May have been processed by Bitso.
According to an article in that newspaper, in early November, 10 million dollars of weekly remittances from the United States were mobilized to Mexico, through the digital currency XRP. Then they detailed that, in the week of April 20 to 26, 42 million dollars were sent, which implies that about 6 percent of all remittances that the nationals that sent to Mexico made it through this platform.
"The average weekly volume of remittances so far in 2020 is 715 million dollars," they indicated in the publication.
Santiago Alvarado, director of Cross-Border Payments at Bitso, said that the increase registered was exponential and that this is due to the fact that the process is less expensive for customers, in addition to the fact that the option provides certain levels of security.
Another point to note is the speed of transactions, which takes minutes, in contrast to other systems, such as -for example- international bank transfers that use the SWIFT network.
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"In addition, it allows reducing costs for the remittance industry and, although end users do not perceive that the process has been carried out through cryptocurrencies, they will be able to benefit from much lower prices, as well as the process becoming simpler, automated digital, without borders and transparent ”, highlighted the article.
In this sense, Alvarado commented: “For us this is very important, since it is something that we started just seven months ago, and that we are sure will grow much more, promoting these cases of use of cryptocurrencies, to which everyone can access from anywhere ”
How does the process work?
The Herald of Mexico detailed how the operation is done, in this way:
A user comes to the United States with a money transmitter (companies like MoneyGram) to send their dollars to Mexico.
The transmitter requests a transfer order with a digital platform (exchange) in that country.
The latter buys XRP cryptocurrencies with the dollars received, sends them to Mexico, in a matter of seconds, to Bitso's wallet, which sells them in the market, to deposit, in pesos, the money transmitter.
The user collects his money in the country faster, easier and with lower commissions, without knowing that his money was sent in this way.
The volume of remittances in Bitso increased by 3%, compared to the figures of the previous month.
Between April 20 and 26, 2020, remittances sent through Bitso totaled more than USD 42 million. According to the company, the figure of 42 million is very important since the average weekly volume of remittances made from Banxico, the Central Bank of Mexico, in that week, was USD 715 million. This means that, at that time, around 6% of total remittances from the United States to Mexico were sent through Bitso.