Brazilian Exchange Bitpreco to Expand to Banking Services – While a number of traditional banking institutions in Brazil now offer or are considering offering cryptocurrency-related services, crypto-centric applications are seeking to add traditional financial instruments to their portfolio of services. Bitpreco, a Brazilian exchange, is currently expanding its services to include banking functions.
The company is one of the largest in Brazil, accounting for thirteen percent of all bitcoin transactions in the last three months. Ney Pimenta, one of Bitpreco’s partners, explained that these new services, which will include payments, digital accounts, and even credit cards, will be made available via a new app called Bitybank. The purpose of this addition is to attract more users to crypto by providing less specialized services.
On this, Pimenta explained: “Digital banking was a great success in Brazil. It is an extremely easy way to bring users to the crypto world with a full-service experience where they can buy, sell, withdraw, deposit, exchange for other assets, and experience DeFi, with the same ease of investing in savings.”
With this move, the company anticipates a 50% increase in its user base, following a fivefold increase in user registrations from 2020 to 2021. Pimenta is aware of the current market conditions, which include the impending collapse of FTX, one of the largest cryptocurrency exchanges. This has prompted the company to invest in robust cashback programs in order to attract individuals to cryptocurrencies via rewards.
Pimenta explained how customer fear can be overcome even in today’s cryptocurrency market, stating: “A lot of people are afraid of buying cryptocurrency, but they wouldn’t have the same fear if they won this cryptocurrency. It’s a way to bring that mass into this universe.”
While Pimenta explained that Bitpreco aspires to have the best cashback program on the cryptocurrency market, he did not elaborate on the program’s structure. However, he did indicate that the institution may offer bitcoin, ether, and solana as rewards to customers who use company-issued cards.