Mexican Platform Bitso Adjusts Its Strategy in Latin America
- Customers of Mexican exchange Bitso in Latin America can receive higher returns on their investments in and USD stablecoin by enabling the new ‘Bitso+’ feature.
- The platform’s strategy is to entice more users to use its app while improving income in times of inflation.
The Mexican cryptocurrency exchange Bitso has outlined its strategy to attract more clients in the region by improving the returns on their investments. The company, which became a unicorn last year, offers up to 15% ROI for USD stablecoins, and yields of up to 6% for Bitcoin.
The new Bitso+ function, which had previously only been enabled for select clients of the platform, can now be used by more than 4 million clients to receive weekly returns dependent on the investments made.
The investments do not have a minimum required amount, so users can invest anywhere between one dollar and thousands. According to company executives, the cryptocurrency most preferred by users is Bitcoin, but USD stablecoins, the value of which is tied to the dollar, are also popular.
“It is an easier way to understand the benefits of cryptocurrencies,” said David Álvarez, head of the Bitso+ program.
Álvarez explained that customers who sign up for a platform account, and invest in USD stablecoins, will receive a 15% return on the first $1,000. Investments between $1,000 and $20,000 receive a 10% return, while for those investing $20,000 or more, returns are 7% per year.
Regarding investment into Bitcoin, a 6% rate of return is applied for the first 0.4 BTC, and from that amount onwards, the nominal rate applied is 3.5%.
“Stablecoins can be leveraged by our users, they can use them to make payments to the other side of the world in a matter of minutes and it is the way to speak of the current modern financial system,” Álvarez said.
The executive claims that the company seeks to use the new strategy to help its clients in Mexico, Colombia, Brazil, and Argentina to work better utilize their money. In future, Bitso plans to add other cryptocurrency options to the program.
“Inflation continues to rise globally and especially in Latin America”, highlighted Daniel Voguell, CEO and co-founder of the firm. “With this new feature, we are providing a new way to increase your wealth just by having your assets in your Bitso wallet,” he emphasized.
Why You Should Care
- The inflation rate in Latin America and the Caribbean stands at 9.28%, according to the most recent report published by Statista.
- In Mexico, experts predict that the levels will remain above 7.5%. On the other hand, the Central Bank intends to announce a further hike to interest rates.
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