Binance Expands into Latin America: Enables Direct Crypto-to-Bank Transfers

Aakarshan590

"Cryptocurrency exchange Binance is expanding its product offerings in Latin America by introducing a new solution for transferring cryptocurrencies directly to bank accounts in the region.

On August 30th, Binance announced that it is collaborating with licensed payment processors to develop a new product called ""Send Cash,"" which allows users from nine countries to transfer cryptocurrency funds directly to bank accounts.

The new feature is available for users from Colombia, Honduras, Guatemala, Argentina, Costa Rica, Paraguay, the Dominican Republic, Panama, and Mexico. Users from these countries will be able to send remittances via Binance Pay to recipients with bank accounts in Colombia and Argentina. Binance Pay is the exchange's native cryptocurrency payment technology platform, and it has been growing in Africa, Asia, and Eastern Europe.

Min Lin, Vice President of Binance's Latin America region, stated that the company is developing new use cases for cryptocurrency in ""everyday life."" He added that individuals and businesses in the region are very open to innovation that can address their specific challenges.

Binance highlighted the challenges faced in Latin America, referencing a 2021 World Bank study that found 42% of adults in the region are unbanked. Cryptocurrencies are frequently used for remittances in the region, and adoption is increasing due to ongoing inflation in many Latin American countries.

Venezuela (which is not included in Binance's new service) has the world's highest inflation rate, reaching 398% according to Trading Economics data. Argentina follows closely with an inflation rate of 113%, ranking fourth globally. Haiti, Cuba, and Colombia also maintain double-digit inflation rates.

However, Binance's expansion in Latin America has not been without challenges. On August 24th, the exchange announced the temporary suspension of its cryptocurrency debit card services in the region. Meanwhile, stablecoin issuer Circle announced a partnership with Latin America's largest fintech company, Mercado Pago, on August 29th to introduce its USDC stablecoin services in Chile."