SukuPay, a blockchain payment provider, was integrated into Banco Industrial’s Zigi app, allowing users to receive U.S. remittances instantly for a $0.99 fee.
This integration could reshape Guatemala’s remittance landscape, offering low-cost blockchain solutions and enhancing financial inclusion, potentially affecting similar banking initiatives across Latin America.
SukuPay Partners with Guatemala’s Largest Bank
SukuPay has partnered with Banco Industrial to embed its payment system within the Zigi mobile app. This collaboration enhances remittance services in Guatemala, aiming to streamline cross-border payments using blockchain technology. Banco Industrial serves as the nation’s largest bank.
The initiative, led by Yonathan Lapchik, CEO of SukuPay, paves the way for blockchain use in banking. It highlights SukuPay’s efforts in bypassing technical barriers for users. This integration utilizes the stablecoin USDC for secure transactions, emphasizing seamless user experience.
The key to mainstream adoption of blockchain technology is making it invisible to the end-user so that there are no technical barriers. That’s the only way we’ll scale blockchain to billions of people — by building the rails, not forcing people to learn how they work.
Guatemala Remittances to Benefit from Low-Cost Model
Lower transaction costs and improved access to banking services could bolster financial inclusion in Guatemala, where formal banking is limited. Remittances constitute a substantial portion of the nation’s GDP, accentuating the service’s potential economic impact.
The integration’s success depends on its ability to provide reliable low-cost transactions, a significant shift from traditional models. Stakeholders are observing how this technology-driven approach might influence future regulatory frameworks and remittance strategies in the region.
First Blockchain Adoption by Major Latin American Bank
While blockchain has been adopted in similar scenarios globally, this marks a first within a major Latin American retail bank. The approach echoes prior strategies in developing markets for overcoming currency instability and banking challenges.
Experts from Kanalcoin suggest this venture could signal a transition for Latin America, setting a new precedence for blockchain adoption in banking. Citing successful case studies, analysts predict potential widespread regional adoption akin to past trends.
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