- Félix and Bitso use the Stellar network to enable fast and affordable remittances for U.S.-based Latino immigrants sending money to Latin America.
- The partnership plans to expand financial services across Latin America, offering more accessible options.
The collaboration between Félix, Bitso, and the Stellar network is transforming cross-border remittances for U.S.-based Latino immigrants, according to a recent report. By integrating blockchain technology and USDC stablecoin, the partnership delivers faster, cheaper, and safer ways to send money to Latin America.
Conventional methods of remittances are still a tedious process. Senders can visit physical locations, pay expensive transaction charges, and expose themselves to risk when dealing with cash. Such methods may take days to complete, thus making both senders and recipients annoyed.
Félix, a WhatsApp-based payments platform and Bitso, the largest crypto exchange in Latin America, have made it easier for users to accomplish this. Through the USD Coin on the Stellar network, remittances take seconds instead of hours or even days in the traditional form. Notably, the transactions are done in a secure manner and at a very low cost compared to the conventional methods.
Félix’s co-founder and CEO, Manuel Godoy, emphasized the efficiency, stating, “The entire remittance process, which could take days, now happens in seconds.”
Leveraging Blockchain and USDC
The key to the solution lies in blockchain and the Stellar network’s infrastructure. Félix leverages chatbots on WhatsApp to enhance the customer experience, and it incorporates the use of AI. The users can perform the transactions on WhatsApp; the user sends the transaction details to an AI bot, and the bot processes the payment through a secure link.
Once funds are transferred, Bitso exchanges U.S. dollars for USDC. The stablecoin is then redeemed for Mexican pesos and sent through Mexican banking channels like SPEI in order to guarantee the deposit into the recipient’s account. Both the sender and the receiver do not have direct contact with the blockchain technology and therefore do not have to worry about complicated processes.
Bitso’s position as an anchor on the Stellar network also makes the process easier. Bitso achieves this by allowing fast on/off ramps between USDC and fiat currencies. Currently, the platform is available in Mexico and Colombia, but its services will be further available across the Latin American region.
Stellar Sees Impressive Gains
Stellar (XLM) has declined 5% in the last 24 hours and 98% in the last week. The resurgence seen in the past 7 days has not only increased Stellar’s market capitalization to approximately $14.47 billion but also ranked it as the 14th largest cryptocurrency.
Market analysts have remained bullish on Stellar’s future prospects. Recently, the Analyst Charting Guy pointed out a multi-year Adam and Eve bullish pattern on the XLM monthly chart. The pattern that has been forming since 2017 may be an indication of a large breakout.
Stellar may possibly rise to the price ranges of $3 – $5, which would be 930% to 1617% higher than the current price. Charting Guy noted that the patient bulls might be waiting for the cryptocurrency to gain another 50 times from the bear market bottom by the end of the current cycle.
