The cryptocurrency exchange, Binance has launched a new platform called 'Send Cash', which allows users from nine Latin American countries to send crypto funds directly to bank accounts based in Colombia and Argentina.
Binance Expands Services in Latin America
According to Binance, its users can transfer digital funds faster through licensed providers at a reduced cost with the new product.
For Binance users, Send Cash will be available in the Dominican Republic, Honduras, Panama, Costa Rica, Guatemala, Colombia, Argentina, Paraguay, and Mexico to transfer their crypto to send funds to recipients with bank accounts in Colombia and Argentina.
The move followed shortly after Binance withdrew a crypto card payment program with Mastercard in four Latin American countries, including Argentina and Colombia. Outside Latam too, Binance is struggling with its payment partners. The Changpeng Zhao-led exchange was recently caught enabling Russians to purchase cryptos on its peer-to-peer trading platform using accounts with four sanctioned banks. Binance called it a 'gap' in its service, which dropped support with these sanctioned banks and is now considering exiting Russia entirely.
Meanwhile, the US arm of Binance, which went all crypto following the lawsuit by the country's securities regulator, recently onboarded MoonPay as a partner to enable on-ramp services.
Crypto Service Surges with Rampant Inflation in Latin America
According to a World Bank study, 42% of adults lack access to bank accounts in Latin America, which remains a challenge. Globally, it represents 24% of the total adult population. Crypto solutions seek to cover this gap as well as reduce financial transaction costs for people who already participate in the traditional system.
Crypto is used for remittances in the region amid out-of-control inflation in many Latin American countries. Venezuela is not included in this service, which has the highest inflation rate of 398%, which is the highest in the world. Argentina's inflation rate is 113% and is placed at number four. Recently, Binance dropped Banco de Venezuela from its P2P platform.
Min Lin, Binance's Regional Vice President for Latin America, said in a statement: "This is another step forward for Binance, which renews its commitment to the crypto industry in Latin America, to the expansion of the benefits it offers in terms of financial inclusion, and to developing new ways of using crypto in everyday life."
