Binance launches new service in Latin America to transfer crypto funds directly to bank accounts

Cryptocurrency exchange Binance is expanding its product offerings in Latin America, launching a new crypto-to-bank account payments solution for the region.

On August 30, Binance said it was working with licensed money transfer processing providers to develop a new “Send Cash” product that would allow users from nine countries to transfer crypto funds directly to bank accounts.

The new feature is available for users in Colombia, Honduras, Guatemala, Argentina, Costa Rica, Paraguay, the Dominican Republic, Panama, and Mexico.

Users from these countries will be able to send money to recipients with bank accounts in Colombia and Argentina through Binance Pay, the exchange’s native crypto payments technology platform that is growing in Africa, Asia, and Eastern Europe.

Min Lin, Binance’s vice president for Latin America, said the company is developing new use cases for cryptocurrencies “in everyday life.”

“Individuals and businesses in the region are very open to innovations that can solve the specific challenges they face,” he added.

Binance highlighted the challenges facing Latin America, citing a 2021 World Bank study that said 42% of adults lack access to a bank account.

Cryptocurrencies are frequently used for remittances in the region, and as inflation continues in many Latin American countries, adoption is increasing.

Venezuela (not included in Binance’s new service) has the highest inflation rate in the world at 398%, according to Trading Economics.

Argentina's inflation rate is 113%, the fourth highest in the world, while Haiti, Cuba and Colombia also have double-digit inflation rates.

However, Binance’s development in Latin America has not been smooth sailing. On August 24, the exchange said it would suspend its crypto debit card services in the region.

Meanwhile, stablecoin issuer Circle announced a partnership on August 29 to bring its USDC to Latin America’s largest fintech company, Mercado Pago, which will provide stablecoin services in Chile.