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Bitso, Ripio and Mercado Bitcoin ask the Central Bank for a payment institution license

November 15, 2022
Por
Fintechsbrasil
Fintechsbrasil
Notícias e negócios
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LFH
The exchanges Bitso, created in Mexico, Ripio, of Argentine origin, and Mercado Bitcoin are among the companies that have requested authorization from Brazil's Central Bank (BC) to be payment institutions (IPs).
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In Bitso's case, the application also includes being a credit union, the companies said in an interview with Blocknews this weekend during Labitconf 2022 in Buenos Aires. The report is from partner site BlockNews.

Bitso CEO and co-founder Daniel Vogel said the plan is to increase the offering of services that are connected to users' financial reality. Therefore, it wants to go beyond an exchange for cryptocurrency transactions and custody. Thus, it can move towards something closer to a digital bank. The IP service, for example, would not only be for individual users, but also for institutional clients. "In Brazil, this customer segment is especially the fastest growing for the company," he says.

Ripio's CEO and co-founder Sebastian Serrano also said that the expansion of services and products is a path the company is traveling. Digital banking is still a possible future for Mercado Bitcoin (MB) as the company's CEO Reinaldo Rabelo has already said. The exchange is one of those on the list of companies that have applied for a license to be IP, In addition, it should soon have a direct lending company, a financial model for fintechs. It already has a license from the Comissão de Valores Mobiliários (CVM) to have crowdfunding and has participation in a securities distributor and in Cerc, a securities platform.


International PIX

Vogel said he intends to launch in Brazil BitsoPay, a payment service using cryptocurrencies in the exchange's wallet and the PIX system. Today, it is possible to transfer Brazilian real to and from the wallet using PIX. In Argentina, last September it launched the service using QR Code. The estimate is that 70% of Argentinians use QR Codes in the country and 90% will do so by 2023, said Bitso's newly appointed CEO in the country, Julián Colombo - until then, the executive was head of Public Policy. The company plans to launch the service in other Latin American countries, not just Brazil.

"We are very fans of Pix. It is the best (payment) system in Latin America and one of the best in the world, similar to China. It is state-of-the-art technology. I would be excited to see more of it in the region," Vogel said. The president of the Central Bank, Roberto Campos Neto, said he intends to release the PIX code to other countries. And he should hold a meeting with other Central Banks in the region that are interested in the system, such as Colombia and Uruguay.

About being a credit society, Vogel did not want to give details. According to the Central Bank, credit, financing and investment companies (SCFI) are the so-called finance companies, which are private and offer loans and financing for the purchase of goods, services, and working capital. Bitso already offers crypto lending services for companies in the industry, for example.

One of the services Bitso has always had its eye on and where it wants to grow is international transfers. "It's a very clear bet. In Brazil, (deploying the service) is more complicated, but we are seeing how to do it," according to Vogel. The issue is the strong control of capital leaving the country. To make operations in small quantities is easier. But Bitso wants to do large amounts and for companies. In the US-Mexico transfer corridor, Bitso predicts it can close the year with a flow of $2 billion. In the first half of 2022 it was $1 billion, a 400% increase over the same period in 2021. And for 2023 it expects to have 10% of the market.

In addition, it is about to launch a credit card in Mexico. There is already a queue in the country of people interested in the card. But, Bitso's CEO did not give further details.


In line for IP

According to Carolina Bohrer, head of the Financial System Organization Department (Deorf) of the Central Bank, there are 90 requests under analysis from companies that want to operate as IPs. The majority (51) are for becoming an IP in the mode of electronic money issuer, which allows the management of prepaid payment accounts.

The remaining 39 applications are divided among applicants to become payment transaction initiators, the so-called ITPs. Of these, five intend to be postpaid instrument issuers, e.g. non-financial institutions that wish to issue credit cards. And there are 24 "hybrid" applications, i.e., those that intend to be an e-money issuer associated with one of the other three modalities (issuer of a post-paid payment instrument, ITP or acquirer), as published by Finsiders, a hub of content about fintechs and a partner of Blocknews and FIntechs Brazil.

Original Article in Fintechsbrasil

Las opiniones compartidas y expresadas por los analistas son libres e independientes, y de ellas son responsables sus autores. No reflejan ni comprometen el pensamiento u opinión de Latam Fintech Hub, por lo cual no pueden ser interpretadas como recomendaciones emitidas por la platafomra. Esta plataforma es un espacio abierto para promover la diversidad de puntos de vista sobre el ecosistema Fintech.

In Bitso's case, the application also includes being a credit union, the companies said in an interview with Blocknews this weekend during Labitconf 2022 in Buenos Aires. The report is from partner site BlockNews.

Bitso CEO and co-founder Daniel Vogel said the plan is to increase the offering of services that are connected to users' financial reality. Therefore, it wants to go beyond an exchange for cryptocurrency transactions and custody. Thus, it can move towards something closer to a digital bank. The IP service, for example, would not only be for individual users, but also for institutional clients. "In Brazil, this customer segment is especially the fastest growing for the company," he says.

Ripio's CEO and co-founder Sebastian Serrano also said that the expansion of services and products is a path the company is traveling. Digital banking is still a possible future for Mercado Bitcoin (MB) as the company's CEO Reinaldo Rabelo has already said. The exchange is one of those on the list of companies that have applied for a license to be IP, In addition, it should soon have a direct lending company, a financial model for fintechs. It already has a license from the Comissão de Valores Mobiliários (CVM) to have crowdfunding and has participation in a securities distributor and in Cerc, a securities platform.


International PIX

Vogel said he intends to launch in Brazil BitsoPay, a payment service using cryptocurrencies in the exchange's wallet and the PIX system. Today, it is possible to transfer Brazilian real to and from the wallet using PIX. In Argentina, last September it launched the service using QR Code. The estimate is that 70% of Argentinians use QR Codes in the country and 90% will do so by 2023, said Bitso's newly appointed CEO in the country, Julián Colombo - until then, the executive was head of Public Policy. The company plans to launch the service in other Latin American countries, not just Brazil.

"We are very fans of Pix. It is the best (payment) system in Latin America and one of the best in the world, similar to China. It is state-of-the-art technology. I would be excited to see more of it in the region," Vogel said. The president of the Central Bank, Roberto Campos Neto, said he intends to release the PIX code to other countries. And he should hold a meeting with other Central Banks in the region that are interested in the system, such as Colombia and Uruguay.

About being a credit society, Vogel did not want to give details. According to the Central Bank, credit, financing and investment companies (SCFI) are the so-called finance companies, which are private and offer loans and financing for the purchase of goods, services, and working capital. Bitso already offers crypto lending services for companies in the industry, for example.

One of the services Bitso has always had its eye on and where it wants to grow is international transfers. "It's a very clear bet. In Brazil, (deploying the service) is more complicated, but we are seeing how to do it," according to Vogel. The issue is the strong control of capital leaving the country. To make operations in small quantities is easier. But Bitso wants to do large amounts and for companies. In the US-Mexico transfer corridor, Bitso predicts it can close the year with a flow of $2 billion. In the first half of 2022 it was $1 billion, a 400% increase over the same period in 2021. And for 2023 it expects to have 10% of the market.

In addition, it is about to launch a credit card in Mexico. There is already a queue in the country of people interested in the card. But, Bitso's CEO did not give further details.


In line for IP

According to Carolina Bohrer, head of the Financial System Organization Department (Deorf) of the Central Bank, there are 90 requests under analysis from companies that want to operate as IPs. The majority (51) are for becoming an IP in the mode of electronic money issuer, which allows the management of prepaid payment accounts.

The remaining 39 applications are divided among applicants to become payment transaction initiators, the so-called ITPs. Of these, five intend to be postpaid instrument issuers, e.g. non-financial institutions that wish to issue credit cards. And there are 24 "hybrid" applications, i.e., those that intend to be an e-money issuer associated with one of the other three modalities (issuer of a post-paid payment instrument, ITP or acquirer), as published by Finsiders, a hub of content about fintechs and a partner of Blocknews and FIntechs Brazil.

Original Article in Fintechsbrasil

Las opiniones compartidas y expresadas por los analistas son libres e independientes, y solamente sus autores son responsables de ellas. No reflejan ni comprometen el pensamiento o la opinión del equipo de Latam Fintech Hub y, por lo tanto, no pueden interpretarse como recomendaciones emitidas por la plataforma. Esta plataforma es un espacio abierto para promover la diversidad de puntos de vista en el ecosistema Fintech.

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