Cryptocurrency exchange Binance is expanding its offerings in Latin America with the launch of a new crypto-to-bank account payment solution for the region.
On Aug. 30, Binance said it’s working with licensed transfer processing providers for its new “Send Cash” product, which allows users from nine countries to transfer crypto funds directly to bank accounts.
The new function is available for users in Colombia, Honduras, Guatemala, Argentina, Costa Rica, Paraguay, the Dominican Republic, Panama, and Mexico.
Users from these countries will be able to send money via Binance Pay to recipients with bank accounts in Colombia and Argentina. Binance Pay, which has seen growth in Africa, Asia, and Eastern Europe, is the exchange’s native crypto payment technology platform.
According to Min Lin, regional vice president of Binance for Latin America, the company is creating new cryptocurrency use cases “in everyday life.”
“Individuals and businesses in the region are very open to innovations that can solve the specific challenges they face,” he continued.
In order to illustrate the issues in Latin America, Binance cited a World Bank study from 2021 that revealed that 42% of adults there do not have access to a bank account.
The use of cryptocurrencies for remittances is growing in the region as many Latin American countries continue to experience severe inflation.
According to Trading Economics, Venezuela, which is not a part of Binance’s new service, has the highest inflation rate in the world at 398%.
With 113%, Argentina has the fourth-highest inflation rate worldwide. Inflation rates in Colombia, Cuba, and Haiti are still in the double digits.
For Binance, things haven’t always gone well in Latin America. The exchange said on August 24 that it was discontinuing its crypto debit card services in the area.
On August 29, stablecoin issuer Circle announced an alliance with Mercado Pago, the largest fintech company in Latin America, to provide its USD Coin in Chile.