Brazilian Exchange Bitpreco to Expand into Banking; Bet on Cashback to Counter Crypto Fear – Exchanges Bitcoin News

Bitpreco, a Brazilian cryptocurrency exchange, has decided to expand its functionality to offer banking services through a new platform called Bitybank. The company, which will also open payment and digital account services, plans to attract users to crypto through cashback programs that counter the fears of users buying cryptocurrency in today’s uncertain market.

Bitpreco launches banking services through Bitybank

While several traditional banking institutions now offer or are considering offering cryptocurrency-related services in Brazil, cryptocentric applications are also seeking to include traditional financial instruments in their service portfolio. Bitpreco, a Brazilian exchange, is now expanding its services to offer banking functions. The company is one of the largest in Brazil, accounting for 13% of all bitcoin transactions in the last three months.

Ney Pimenta, one of the partners at Bitpreco, explained that these new services, which will include payments, digital accounts and even credit cards, will be offered through a new app called Bitybank. The goal of this inclusion is to drive more users to crypto by offering less niche oriented services. On this, Pimenta explained:

Digital banking was a huge success in Brazil. It is an extremely easy way to bring users to the world of crypto 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.

The company predicted a 50% increase in its user base with this move, after recording a fivefold increase in user registrations from 2020 to 2021.

Cashback as an adoption incentive

Pimenta is aware of the current state of the market, which is facing the demise of FTX, one of the largest cryptocurrency exchanges in the world. This has led the company to invest in strong cashback programs to bring people to crypto through rewards.

Explaining how customer fear can be overcome even in today’s cryptocurrency market, Pimenta said:

Many people are afraid to buy cryptocurrency, but they would not 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 wants to have the best cashback program in the crypto market, he did not reveal further details about the structure of this plan. However, he said the institution may include bitcoin, ether and solana among the currencies offered as rewards to customers who use cards issued by the company.

What do you think of Bitpreco and its strategy to increase the use of cryptocurrency? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price spike occurred during December 2017. He has a computer engineering background, lives in Venezuela and is influenced by the cryptocurrency boom on a social level, offering a different point of view on crypto success and how it helps the unbanked and underserved.

Image credit: Shutterstock, Pixabay, Wiki Commons