The service, which is called Coinpago, will allow users to make payments in every store and retailer in the country that accepts Pagomovil, a banking service that allows seamless fiat transfers between banks in the country.
Coincoinx to Ease Crypto Payments in Venezuela
While cryptocurrency is slowly going mainstream, becoming more popular in many locations around the world, there are still many retailers and service providers that are not accepting cryptocurrency as a means of payment. However, services that combine traditional bank-based payments and crypto are growing, and bringing functionality to crypto users. Coincoinx, a cryptocurrency exchange in Venezuela, has announced the launch of a service that will combine crypto and fiat for traditional payments.
The service, called Coinpago, aims to allow customers of the exchange to bypass trading their cryptocurrency to make fiat-based payments, so they can make payments on the go. Coinpago will let users skip the exchange phase and give them the possibility of making use of the Pagomovil service, allowing people to pay wherever this kind of bank-based payment method is accepted.
While some time ago the use of the dollar in Venezuela was forbidden by law, in recent years this situation has become more flexible, with the dollar taking an important spot in the global payments panorama of the country. However, the native fiat currency has started to retake an important spot for payments due to the introduction of the foreign fiat and cryptocurrency tax, which adds 3% to any payment using these.
This has reduced the number of cryptocurrency payments, with people being swayed to pay with fiat. With the proposed service, in its beta stages, Coincoinx seeks to address the problem. The tool will also allow people outside of the country to make fiat payments to pay for purchases of their families in the country, serving as a way of substituting remittances, too.
Leonardo Galindez, CEO of the exchange, stated:
With this tool we are trying to make life easier for people. For example, if you have a relative in Spain who opens a CoinCoinX account and has funds available in tether or bitcoin, they will be able to make a pago movil instantly.