Bitso, a Mexico-based, Latam-focused cryptocurrency exchange, has launched an initiative that aims to allow Argentines to use crypto for their everyday purchases. The exchange is introducing QR payments directly in its app, which will be interoperable with other platforms already using this method of payment in Argentina.
Bitso Seeking to Drive Crypto Payments in Argentina
Bitso, one of the biggest exchanges in Latam, with more than 5 million customers, is extending its focus on payments in Argentina. The exchange has launched one of the first interoperable QR payment systems of its kind in the country, hoping to attract more Argentines to use crypto as payment.
Argentine customers of the exchange will be able to use their balances of Argentine pesos, stablecoins, bitcoin, or ether to pay at any of the merchants that have QR code payments activated. Depending on the currency, Bitso will manage exchange rates to exchange these cryptocurrencies and deliver Argentine pesos to the merchant.
Bitso aims to expand this initiative to other countries, but Argentina was selected as the first due to its very high level of adoption of QR payments. According to the company, 59% of Argentines have used QR payments in the last year, compared to 34% in Latam. For Argentina, these numbers are expected to reach more than 80% next year.
Combining Savings With Payments
Argentina is currently battling the adverse effects of high inflation levels in its economy. The country registered a Consumer Price Index (CPI) of almost 80% in August, one of the highest in the region. Projections estimate that the CPI will exceed the 100% mark in December.
Also, the devaluation of the national fiat currency as a result of political turmoil has led Argentines to take refuge in stablecoins. However, Bitso wants Argentines to combine the savings utility of crypto with its payments capabilities to facilitate use and avoid manual exchange when paying.
Santiago Alvarado, senior vice president of product at Bitso, stated:
This is an especially important product offering for Argentina as it provides users protection from the adverse economic factors such as inflation and currency devaluation. In addition to increasing financial opportunities for users, Bitso is fulfilling its mission to make crypto useful.
The product will be activated gradually for all Argentine customers starting September 27.
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