Bitso Launches MXNB Stablecoin for Efficient Cross-Border Payments in Latin America

Latin America's cryptocurrency landscape is rapidly evolving, with significant developments in stablecoin adoption and blockchain integration within the banking sector.

Bitso Business, a subsidiary of the Mexican cryptocurrency exchange Bitso, has announced plans to launch a stablecoin pegged to the Mexican peso. This new stablecoin, named MXNB, will be issued and managed by Juno, a newly established company under Bitso. MXNB will be fully backed by Mexican pesos on a one-to-one basis, ensuring stability and reliability for users.

Ben Reid, the head of stablecoins at Bitso Business, highlighted that the primary use case for MXNB is to facilitate international investment and trade within Latin American markets. He emphasized that the stablecoin will enable businesses to operate more efficiently than traditional financial infrastructure, which often presents significant monetary challenges.

MXNB aims to streamline cross-border payments for multinational corporations, addressing issues such as high intermediary fees and slow transaction times. This development comes at a time when the rise of stablecoins in Mexico, coupled with a favorable remittance environment, has sparked increased interest in cryptocurrencies.

Mexico is a key player in cryptocurrency-based remittances, receiving around $61 billion annually, primarily from the US. This trend is further supported by a 9% increase in stablecoin purchases on Bitso’s exchange, driven by local users seeking reliable stores of value amidst significant inflation and currency devaluation.

During a recent fintech conference, experts from Bitso, Koibanx, and Banco Nación (Argentina) discussed the advancements of blockchain and tokenization in the traditional financial system. These technologies are enhancing efficiency and financial inclusion across the region by revolutionizing processes such as remittance transfers and investment access through asset tokenization.

Leo Elduayen, CEO of Koibanx, noted that regulatory frameworks are beginning to include the tokenization of financial securities, marking a significant step towards democratizing capital markets. The discussion also highlighted the growing relevance of blockchain in remittances and international payments, with stablecoins and blockchain technology already used in 10% of remittances between the US and Mexico.

Traditional banks in the region are also embracing blockchain solutions. For instance, banks such as Macro and Mercantil are incorporating blockchain for payment processing, indicating a shift towards greater involvement in bitcoin adoption.

In a related development, the Blockchain Association of Guatemala has proposed an innovative solution to address landfill environmental issues by transforming them into Bitcoin data centers. This project aims to tackle two major problems: limited space and the risk of fires at garbage disposal sites.

As cities expand, waste generation increases dramatically, posing operational challenges for landfills and necessitating new disposal solutions. The association suggests that locating Bitcoin data centers in landfills could improve waste management efficiency and support the use of renewable energy in the growing bitcoin sector. Bitcoin data centers require renewable, continuous, and low-cost energy sources to validate transactions on the Bitcoin network, making this proposal a potential win-win solution.