Banco Industrial Integrates Blockchain for Instant Remittances at $0.99 Fee

Banco Industrial, Guatemala’s largest bank, has integrated blockchain technology into its mobile banking app through a partnership with crypto infrastructure provider SukuPay. This integration allows Guatemalans to receive remittances from the United States instantly and at a low cost. The Zigi payment app, which is powered by SukuPay’s infrastructure, enables users to receive funds without the need for a crypto wallet or an International Bank Account Number (IBAN). The flat fee for this service is $0.99.

Yonathan Lapchik, CEO of SukuPay, emphasized the importance of making blockchain technology invisible to the end-user to achieve mainstream adoption. He stated that the key to scaling blockchain to billions of people is by building the necessary infrastructure without requiring users to understand the technical details. This approach aims to remove any barriers that might hinder the widespread use of blockchain technology.

Banco Industrial, established in 1968, has a significant presence in Guatemala with over 1,600 service locations. As of 2023, the bank had assets totaling over 150 million Guatemalan quetzals, equivalent to approximately $20 million US. This integration with SukuPay marks one of the first instances of a crypto-native protocol being used within a major Latin American retail bank. The bank also has operations in Honduras, Panama, and El Salvador, making it a key player in the local remittance markets.

Remittances play a crucial role in Guatemala and the broader Latin American region. According to the Inter-American Development Bank, remittances to Latin America and the Caribbean are projected to total approximately $161 billion in 2024. Monthly remittances typically range from $131 to $648, representing between 6% and 23% of the sender’s average income. Lapchik highlighted the inefficiencies in the current remittance system, noting that families in Guatemala lose 6% to 10% of their remittances to fees and delays. He emphasized that blockchain technology can solve these issues by enabling instant and low-cost money transfers, integrated into the bank apps that people already use.

Latin America is the second-fastest growing region in terms of crypto adoption. While Guatemala lags behind regional leaders such as Argentina, Brazil, Mexico, Venezuela, and Colombia, the use of stablecoins is cited as a primary driver of crypto adoption in the region. Lapchik noted that stablecoins facilitate cross-border transactions more easily, but users do not necessarily seek out stablecoins; rather, stablecoins provide the best means to achieve efficient and cost-effective remittances.