The integration of traditional Latin American banking into the Bitcoin (BTC) ecosystem is more than a fait accompli. In different countries in the region, there are financial institutions that offer services for BTC and cryptocurrency users, reaching millions of people. From Brazil, through Colombia and landing in Central America, it is possible to find banks that offer services to users of BTC and cryptocurrencies. For years they have been integrating into the ecosystem of Bitcoin. Something that has been driven by the trend of the world's major banks that have also joined the emerging market. Recently BitcoinDynamic reported that one of the largest digital banks in Latin America, with more than 100 million users, will integrate the Bitcoin Lightning network. This is Nubank, a bank of Brazilian origin that long ago adopted BTC and its technology completely, for the benefit of its customers. Since 2022, Nubank entered the BTC market. At that time, They launched a bitcoin and ether (ETH) trading servicethe cryptocurrency of the Ethereum network. As BitcoinDynamic reported, the bank's platform enabled the purchase of these digital assets with Brazilian reals. Then, in April 2024, they reported that they had already allow the deposit and withdrawal of BTC and cryptocurrencies directly from the platform. As reported at the time, the financial institution with around USD 20 billion in assets enabled movements with BTC, ETH and SOL, the cryptocurrency of the Solana network. And more recently, the implementation of the Bitcoin micropayment network was announced. This, in essence, was a milestone for the traditional banking industry in Latin America, considering that Bitcoin's second layer solution It is usually implemented in exchanges and payment gateways, but not in banks. With its actions, Nubank has become an example to follow for the Latin American banking industry interested in Bitcoin. Although, it must be clarified, there are already financial institutions that They have decided to chart their own path since last year. Which are?
Bancolombia
In May 2024, Bancolombia, which is one of the largest financial institutions in the coffee-growing country, announced the launch of services for bitcoin and cryptocurrencies. An important step for that banking institution.
As reported by BitcoinDynamic, the Bancolombia financial group began to offer services for virtual assets through Wenia, a subsidiary cryptocurrency platform of this banking entity based in Bermuda. As reported by the bank, users You can use Wenia to buy, sell, convert, send and receive bitcoin, ether, USD Coin (USDC) and MATIC, Polygon's cryptocurrency. There is also support for COPW, which is a digital currency with 1:1 parity with the Colombian peso. This service was enabled, in the first instance, for clients in Colombia. In fact, this platform can be used in Usiacuri, the first Colombian municipality that allows locals to accept cryptocurrencies as a means of payment, a fact recorded by BitcoinDynamic. According to the head of Bancolombia's blockchain division, Juan Ramírez, cryptocurrencies help understand how banking will behave in the future. As Ramírez told BitcoinDynamic in October 2023, The union between Colombian banking and the Bitcoin sector “is on the way.”
The Bancolombia financial group began to offer services for virtual assets through Wenia. Source: Bancolombia.
Cuscatlan Bank
Since August 2023, Banco Cuscatlán, which is one of the traditional financial institutions in El Salvador, joined the Bitcoin ecosystem. As reported at the time, this banking institution started accepting BTC for payment of credit lines and personal loans. Rated last year as the best bank in El Salvador, the first country in the world to legally adopt BTC, Banco Cuscatlán informed BitcoinDynamic that its more than 700,000 clients have the option to pay their debts making use of the largest digital asset on the market.
In addition to loans and cards, Banco Cuscatlán customers can pay for various public services with bitcoin, such as water, electricity, telephone and internet. Now, this entity has enabled payments with BTC only through the Chivo Walletthe bitcoin wallet developed by the government of El Salvador. It should be remembered that the Chivo Wallet is a platform that has been the subject of complaints and criticism from Salvadoran users. This is because the wallet has had flaws practically since its launch, including: deductions of money and freezing of funds.
Banco Cuscatlán customers can pay for utilities, such as water, electricity, telephone and internet, with BTC. Source: Banco Cuscatlán.
Agricultural bank
Another Latin American (and Salvadoran) bank that offers services with bitcoin is Banco Agrícola. Likewise, one of the largest financial entities in the Central American country. Also since August 2023, this institution with more than 1.4 million clients enabled the payment of credits and other debts with BTC. This, through its mobile application and its digital platform. As reported by that banking entity on its official website, customers can generate QR codes to make payments for credit cards and loans, relying on the Bitcoin Lightning network, which is the micropayment solution for the digital asset. pioneer. It must be taken into account that Banco Agrícola is part of the Bancolombia financial group. Thus, this Salvadoran institution has the endorsement of the coffee banking giant to accept bitcoin as payment for their services.
Banco Agrícola, which has more than 1.4 million clients, has enabled the payment of loans and other debts with BTC. Source: Banco Agrícola.
TowerBank
One of the Latin American banks most committed to the Bitcoin ecosystem is the Panamanian TowerBank. Since 2022, this financial institution joined the market and declared itself “friendly” with the emerging sector. In that year, TowerBank announced the creation of Crypto Friendly accounts, allowing bitcoiners to Trade your assets without risks of closure or censorship.
TowerBank, which is among the 30 largest banks in the Central American country, assured cryptocurrency users that they will not suffer blockages, closures and setbacks by trading these digital assets in the Panamanian financial system. In July of that year, the Panamanian bank introduced a new Visa debit card that allows the use of cryptocurrencies in everyday life. The product is linked to the Crypto Friendly account.
It was not until 2023 when TowerBank announced that customers can buy bitcoin through an Ikigii wallet, created by the financial institution. The announcement was made within the framework of the Blockchain Summit Latam 2023 event, where BitcoinDynamic was present. According to the bank, the wallet allows customers trade crypto assets and your bank accounts at the same time. According to Gabriel Campa, head of the cryptoasset division at TowerBank, it is a product that “brings together the best of the banking and cryptocurrency ecosystems.” However, although this bank declared itself friendly to cryptocurrencies, they maintain their protection. This is because they have an exclusion policy against users of cryptoasset transaction mixers, sites that are rated by this entity as tools commonly used for illicit activities.
Since 2022, TowerBank has joined the market and declared itself “friendly” to the emerging sector. Source: TowerBank.
Itau Unibanco
One of the largest and oldest financial institutions in Brazil and all of Latin America, Itaú Unibanco, is another of the renowned banks that joined the Bitcoin ecosystem in favor of its clients. Since June 2023, this entity entered the market. This was first through its joining the Brazilian Cryptoeconomics Association (AB Brasil). Months later, in December of that year, Itaú Unibanco launched a service to allow clients of its investment platform Trading with Bitcoin and other cryptocurrencies
As the head of Digital Assets of the bank, Guto Antunes, said, the service It was initially offered with bitcoin and etherthe cryptocurrency of the Ethereum network. As stated, registered customers can buy cryptocurrencies for a minimum of 10 Brazilian reals (USD 1.80) without any commission. According to Antunes, Itaú Unibanco already has a structure adapted for this financial activity. It was at the beginning of this month of June that Itaú Unibanco announced that all of the entity's clients can buy BTC and ETH through a digital platform called Íon.
According to what was reported by BitcoinDynamic, the banking institution's service is now available to all customers who download the application. Although it is estimated that soon all users will be able to operate with these assets even without being Itaú Unibanco clients.
Guto Antunes said that the service with bitcoin would be made available to all bank customers after noticing the high interest of users in the cryptocurrency ecosystem.
Itaú Unibanco announced that all of the bank's clients can purchase BTC and ETH. Source: Itaú Unibanco.
Bank of Brazil
The oldest banking entity in Brazil and one of the largest in the Latin American region, Banco do Brasil, is another of the traditional financial institutions that decided to enter the bitcoin ecosystem for the benefit of its clients. Since February 2023, this entity has partnered with the startup Bitfy to allow its clients to use BTC and other cryptocurrencies to pay the taxes of the South American country.
As explained by that bank, Banco do Brasil clients can select the cryptocurrency they want to use to pay taxes. Next, They must scan a barcode and enter a six-digit code to approve the transaction. With Bitfy, Banco do Brasil clients can use BTC, ETH and other digital assets, such as those that are part of the different metaverses, including MANA from Decentraland and SAND, from The SandBox.
Banco do Brasil customers can select the cryptocurrency they want to use to pay taxes. Source: Banco do Brasil.
What does it mean when large Latin American banks join Bitcoin?
The integration of large Latin American banks into the Bitcoin ecosystem marks a historic milestone in the region, opening new possibilities for adoption and the development of the world of cryptocurrencies. It is, in effect, a movement that represents a paradigm shift in the traditional position of financial institutions towards digital assets, going from distrust and rejection to exploration and integration.
The examples of Nubank, Bancolombia, Banco Cuscatlán, Banco Agrícola, TowerBank, Itaú Unibanco and Banco do Brasil, are a novel chapter for the digital economy in the region. In general, it is a position that represents an important step. towards widespread adoption of the Bitcoin ecosystem and, in turn, opens a range of possibilities for the development of new financial products and services.