Island Pay and Circle introduce cryptocurrency remittance solution in Latin America.

Island Pay and Circle introduce cryptocurrency remittance solution in Latin America.

Revolutionizing Cross-Border Payments: Island Pay and the Crypto Remittance Solution

Source: Pixabay

Island Pay, a fintech company based in the Bahamas, is making waves in the blockchain industry with its launch of a crypto remittance solution. This innovative solution aims to address the extreme high costs associated with traditional cross-border payment systems, bringing financial inclusion to individuals in Latin America and the Caribbean. With the introduction of their digital wallet “CiNKO,” Island Pay plans to revolutionize the way people conduct transactions, fund prepaid cards, and facilitate peer-to-peer payments in over 30 countries.

CiNKO to Address Existing Challenges Faced by Traditional Finance

To offer a practical alternative payment solution, CiNKO relies on Circle’s USDC stablecoin as its primary currency. This move aims to improve on some of the common challenges faced by traditional cryptocurrencies, such as unpredictable price fluctuations. By utilizing stablecoins and decentralized finance protocols, Island Pay aims to reshape the remittance landscape, potentially reducing the cost of remittances by an impressive 80%.

Latin America experienced a significant increase in remittances, reaching $145 billion in total last year. Despite a slight slowdown in 2023, the growth rate of remittances in the region is projected to continue at an all-time high. However, one of the significant hurdles for crypto remittances in Latin America is the ease of converting cryptocurrencies into local currencies, especially in countries with limited acceptance of tokens like Bitcoin or Ether.

By choosing to use USDC, which is pegged to the US dollar, CiNKO addresses the volatility concerns typically associated with traditional cryptocurrencies. This immediate usability of CiNKO’s USDC balance, transferable onto a prepaid card, makes it a user-friendly and accessible solution for individuals in the Caribbean and Latin America.

Island Pay Aims to Onboard 10,000 Users by Next Year

Island Pay’s entry into the crypto remittance space is expected to resonate with users in Central and South America as well. The company has set a goal to onboard around 100,000 users by next year, building upon its already established presence in the Caribbean’s digital payment services sector.

Founded in 2016, Island Pay has made its mark in the industry and has even played a role in central bank digital currency adoption by collaborating with the Bahamas’ Sand Dollar in 2021. However, despite the progress made by crypto remittance solutions, traditional financial intermediaries still present challenges for individuals seeking cost-effective and speedy cross-border transactions.

Nevertheless, the rise of cryptocurrencies in the remittance landscape holds promising potential to revolutionize financial inclusion, providing low-income earners and migrants with a more affordable and efficient option to send money back home. Island Pay’s crypto remittance solution brings us one step closer to that vision. With CiNKO and USDC, individuals in Latin America and the Caribbean can now access a reliable, low-cost, and user-friendly platform to conduct their financial transactions, ultimately advancing financial inclusion in the region.