Crypto Owners in Chile Can Now Pay in 5,000 Local Stores
Two Chilean platforms have joined forces to increase cryptocurrency adoption and approximately 5,000 stores can now accept digital payments, instantly converted to the local fiat currency.
Cryptocurrency enthusiasts in Chile can now spend their coins in over 5,000 stores. One of the leading local exchanges Crypto MKT announced a partnership with Flow.cl, a payment processing company. The key feature of this deal is the instant crypto to fiat conversion, which means sellers will not be exposed to any market volatility risks. This is one of the main issues, often pointed out by the skeptics of mass adoption.
CryptoCompra, a platform developed by Crypto MKT, is the main driving force behind this functionality. It currently supports Bitcoin (BTC), Ether (ETH) and Stellar Lumens (XLM) as payment options for buyers. Shop owners, on the other hand, can choose between Chilean and Argentinian Pesos, Brazilian Real or Euros as the fiat currency they wish to receive. While this technically means similar partnerships can be extended across other countries, the current one is mainly focused on Chile. Flow.cl is a leading payment provider in the country, which is mostly used in online stores.
The fees involved are also allegedly very low, sitting at 0.9%. That being said, the CryptoCompra system, which is derived from the Crypto MKT exchange, probably directly accesses its liquidity. This means a bigger order may have negative consequences on the final price, depending on the orders placed by others.
The development is a welcome sign for the cryptocurrency community as a whole and South America in particular. Keep in mind, there was a period of several months where the only public Chilean bank, Banco Estado stopped dealing with cryptocurrency exchanges. Their decision was later overruled by the local authorities, and the current announcement only shows this community’s resilience.