BCI + Buda.com: Alliance breaks new ground in Chile
The end of the controversy between banks and cryptocurrency platforms in Chile is in sight, and opportunities for new partnerships are emerging. After 4 years of legal wrangling — in full public view — Buda.com opened an account with BCI bank.
“This milestone marks a new path for the development of the crypto industry in Chile,” Buda.com said via Twitter. “BCI, welcome to the new
financial industry,” it added.
The dispute between exchanges and banks dates back to 2018, when 10 Chilean banks (including BCI, BBVA, Banco de Chile and Santander) blocked CryptoMKT and Buda.com accounts because they considered their operations high risk. BCI reached an agreement before the court ruling; however, the legal process continues for the other companies involved.
The Chilean bank’s latest move is positive for those involved in the case, as well as for the rest of the market, because it is a sign of the banking industry’s acceptance of new players and potentially opens up new areas of
business for traditional players.
“This opportunity paves the way for the integration of blockchain technology into conventional financial services, which represents a revolutionary technological leap,” said Alejandro Maximo, CEO of Welten Fintech, a company that develops digital channels, including gateways for financial services, payments with cryptocurrencies, and blockchain technology.
“[Blockchain] technology will be a standard throughout the industry,” he told iupana.
Chile’s financial industry is also waiting for the president to sign the Fintech Law, which will provide a firmer legal ground for the exchanges operating in the country.
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BBVA reaches a record thanks to digitization
BBVA signed up 8.6 million new customers globally as of September this year, of which 54% were incorporated through its digital channels. The Spanish bank also registered a 39% rise in the number of digital clients to 47.8 million since September 2020 and a 44% increase in mobile clients. The bank said the expansion has allowed it to bolster cross-selling through virtual channels.
- Next week, Bradesco, Inter and Itaú will publish their third quarter earnings reports. Stay tuned for more details.
More fintechs enter the remittance market
Spin, the digital wallet owned by Mexico’s Femsa group, has launched its remittance service in the local market. In addition, Remessa Online do Brasil — part of Ebanx — presented a cross-border payment service for companies that doesn’t
require the use of credit cards. And fintech Ping started operations in Argentina, with options for overseas payments in dollars, pesos and even cryptocurrencies.
These companies come on top of the five fintechs that are reinventing the remittance business in LatAm and that we reported on two weeks ago. On Monday, we will discuss crypto remittances in an exclusive interview with Bárbara González, CFO and general director of Bitso
Mercado Pago launches cryptocurrency exchange in Mexico
Mercado Pago now allows its clients in Mexico to buy, sell and save bitcoin and ether on its platform. The service was implemented in partnership with Paxos, a global crypto custody and blockchain services company.
- Wally from Panama
presents a digital wallet in partnership with Mastercard, users can request a physical or virtual prepaid card.
- The working capital solutions fintech, Omnilatam, changes its brand name to KLYM, with the purpose of reaching new markets and promoting its solutions in Latin America, China and the United States.
Kapital of Mexico receives US$100m
Mexican digital bank Kapital obtained a US$100 million investment from Sivo, a fintech that provides debt capital, to speed up its arrival to Colombia. The financing will be used to provide loans to Colombian SMEs.
- Mattilda from Mexico raises US$10 million in a seed round led by VC fund FinTech Collective and QED Investors, among others. It intends to use the proceeds to expand financing operations for schools.
Binance hires Frida Vargas
Frida Vargas is Binance’s new country manager in Mexico. Vargas previously worked at Bitso as head of business development.
Rappi appoints global VP of corporate affairs
Rappi appointed Martin Martorell as global vice president of
corporate affairs. Martorell, an Argentinean, joined the company’s human resources division for Brazil and LatAm in 2020.
The tokenization of agricultural commodities looks set to change financing for the farming sector. This week, we spoke with Eduardo Novillo, CEO and co-founder of Agrotoken, a fintech that issues stablecoins backed by corn, wheat, and soybeans — a new form of collateral that has the potential to simplify agricultural lending in the region.
- This month, Agrotoken will list the first tokens available to investors on the Ripio crypto exchange.
- The model brings benefits for the producers by providing immediate access to financing and reduces risk for investors due to its backing in commodities.
- The product aims to provide financial solutions to a traditionally complex and vulnerable sector.
Learn about the opportunities created by the digitalization of agricultural commodities in this week’s lead article.