There are millions of unbanked people in South America who are in the dire need of financial inclusion. However, as the existing financial infrastructure is incapable of meeting the requirement, Bitcoin has step up. BitInka, a Bitcoin platform that operates in Peru, Venezuela, Bolivia and Brazil will soon expand its services throughout Argentina, Colombia and Chile.
Thus, it has become South America’s first universal Bitcoin platform targeted for the unbanked and all set to emerge as a major choice for remittance market. Founded in 2013 by Roger Gabriel, BitInka is one of the only companies in South America which implemented Bitcoin trading to create a Bitcoin exchange.
This company allows its users to convert or withdraw Bitcoin for many local currencies of South America, including the Peruvian Nueva Sol and the Argentinean peso. Nonetheless, through its international and instant Bitcoin exchange platform, the Bitcoin startup aims to penetrate mainstream Bitcoin adoption as well.
For the purpose it is implementing Bitcoin in day-to-day finances and to provide a platform for users without any prior knowledge about the currency. A couple of years ago, BitInka partnered with local banks, financial institutions and local collection agencies including Banco de Crédito del Perú and Banco de Crédito de Bolivia.
The partnerships enabled it to provide fast and easy withdrawal processes for users. Additionally, for some regions, the company’s Bitcoin exchange and wallet platform will be the first Bitcoin-related application to be introduced. Nonetheless, as the biggest market of South America is based on day-to-day expenses, it will be a great relief for the users.
Bitcoin can Improve Financial Inclusion in South America
For instance, e-commerce, convenience stores, taxis, kiosks (small stores), etc. would become easy, particularly, when credit card penetration is substantially low in South American countries. Furthermore, banks and financial institutions require a long list of documents and qualifications for bank accounts, and credit cards.
The documentary requirements like two government approved licenses, tax income of at least two years, and financial statements from at least two different financial institutions, etc. make it difficult for users to own a credit card in South America. In such a situation Bitcoin gives the ordinary users a lot of relief from financial untouchability.
Pierna Caballero, the co-administrator of BitInka admits that in some countries where the company operates, people are educating themselves recently to use Bitcoin and they are realizing that is something very easy and also is a currency that people themselves control.
To contact the reporter of this story: Deepak Tiwari at email@example.com