Bitso introduces crypto remittances between Canada and Mexico

by | Sep 18, 2022 | Market, Market News, News | 0 comments

According to a recent release, Bitso, a significant partner of Ripple and an ODL corridor, has formed a partnership with Africhange, a payment system with roots in both Africa and Canada that focuses on remittances. With the use of cryptographic technology, the alliance intends to make it easier for people to send money to each other from Canada and Mexico, as well as to cut down on the fees that end senders have to pay and streamline the whole chain of transactions.

Executives from Africhange have said that selecting a new partner was simple due to Bitso’s extensive experience in international financial transactions as well as the company’s tight collaboration with Ripple. The relationship ended up being good for all parties involved: Africhange can access a new market on a new continent, and Bitso is provided with the opportunity to both expand its turnover and assist its countrymen who are located outside of the country.

What is Bitso?

Bisto, a cryptocurrency exchange that specializes in Ripple On-Demand Liquidity (ODL), has formed a partnership with Africhange to allow payments across the border between Mexico and Canada. A total of seventy million dollars worth of cross-border transfers from Canada to Nigeria were completed through Africhange. Because Africhange was interested in expanding its service offerings to Mexico, the firm formed a partnership with Bitso, which made it possible for money to be transferred from Canada to Mexico.

Why was the collaboration necessary?

Because there are so many job prospects in Canada, there has been an increase in the number of Mexicans who have chosen to make that nation their permanent home and place of employment, as said in an announcement.

Another instance of a working relationship that seems to be highly amicable is shown below. The money transfer company Africhange, which already has a business worth $70 million in remittances from Nigeria to Canada, is expanding into a new market on a new continent. On the other hand, Bitso sees a chance to expand its own company while also assisting its countrymen living outside of the country.

As of the year 2020, there will be close to 130,000 Mexicans living in Canada; this figure has exploded over the previous two years. At present, immigrants make up about 21% of Canada’s total population. These immigrants, who make up 15 percent of Canada’s population, are continuously sending money back to their loved ones and family members in their home countries. According to Africhange, a total of $146 million has been transferred to Mexico from Canada as of the year 2022, citing a report that was made available by Data Mexico.

The prominent conclusions of the scheme

The most important takeaway from the recent events is that Bitso is Ripple’s On-Demand Liquidity (ODL) corridor in this area and that XRP accounts for sixty percent of the trading activity on the exchange. In addition to the possibility of an extension of the usage of XRP in international financial transactions, we have a scenario in which three continents – Africa, North America, and South America – are connected by a cryptocurrency-based international financial transaction technology.

Obaoye continued by saying that Africhange aims to make it simple for Mexican immigrants residing in Canada to transfer money back to their families and friends in Mexico. This is made feasible by the company’s efforts to overcome the primary challenges presented by international settlements, such as the lengthy transaction procedure and the high costs associated with international transfers.

Final Thoughts

Bitso is a leading cryptocurrency start-up in Latin America that has been actively promoting the use of Ripple technology to facilitate international financial transactions. The cryptocurrency exchange worked up with Everest to facilitate international money transfers to Mexico using XRP. Interestingly, Bitso has been a prominent participant in recent XRP transfers that include substantial quantities of cryptocurrency. 

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