Brazilian cryptocurrency exchange bitpreco is reportedly launching a platform that will provide banking services.
The new platform, called Bitybank, will offer payments, digital accounts and credit cards through an app, Bitcoin.com reported Wednesday (23 November).
“Digital banking has been a big hit in Brazil,” said Bitpreco partner Ney Pimenta, according to the report. “It’s an extremely easy way to bring users into the world of crypto with a full-service experience where they can buy, sell, withdraw, deposit, trade for other assets, and experience DeFi, with the same ease of investing in savings.”
Bitybank will also offer customers using its cards a rewards program that will pay them in crypto — a way to introduce people to the crypto market, according to the report.
“A lot of people are afraid to buy cryptocurrency, but they wouldn’t have the same fear if they earned that cryptocurrency,” Pimenta said in the report. “It’s a way to bring that mass into this universe.”
The number of registered users on Bitpreco’s cryptocurrency exchange has increased fivefold between 2020 and 2021, and the company expects the introduction of banking platform Bitybank to increase that number by 50%, according to The report.
PYMNTS research found that 98% of bank customers in Brazil leverage some form of digital bank — higher than the 90% observed in Latin America as a whole.
The country’s adoption of digital banking is also spilling over to digital payments. The Brazilian government and central banking system are harnessing this digital innovation with their own instant payments platform, Pix, which is now used by more than half of the country’s consumers, according to the “Digitization of Payments in Latin America Playbook», a PYMNTS and Kushki collaboration.
Other forms of digital innovation, such as cryptocurrency, are also widely adopted, according to the report.