Guatemala\u2019s largest bank, Banco Industrial, has integrated crypto infrastructure provider SukuPay into its mobile banking app, allowing locals to more easily receive remittances powered by blockchain technology.\u00a0<\/p>\n
SukuPay\u2019s infrastructure has been fully embedded inside the Zigi payment app, allowing Guatemalans to receive funds from the United States instantly for a $0.99 flat fee, the company disclosed on May 21.\u00a0<\/p>\n
Users of the Zigi app do not need a crypto wallet or an International Bank Account Number (IBAN) to receive the funds, the company said.\u00a0<\/p>\n
SukuPay CEO Yonathan Lapchik told Cointelegraph that the \u201ckey to mainstream adoption of blockchain technology is making it invisible to the end-user\u201d so that there are no technical barriers.\u00a0<\/p>\n
\u201cThat\u2019s the only way we\u2019ll scale blockchain to billions of people \u2014 by building the rails, not forcing people to learn how they work,\u201d said Lapchik.<\/p>\n
Established in 1968, Banco Industrial has more than 1,600 service locations throughout Guatemala. As of 2023, it had over 150 million Guatemalan quetzals in assets, equivalent to roughly $20 million US. SukuPay said its integration with Zigi marks one of the first crypto-native protocols to be used inside a major Latin American<\/a> retail bank.<\/p>\n Banco Industrial has a long-term issuer default rating of BB. Source: <\/em>Fitch Ratings<\/em><\/a><\/p>\n The bank also has operations in Honduras, Panama and El Salvador and is a key player in local remittance markets. <\/p>\n Related: <\/strong><\/em>Bitcoin treasury adoption grows in LATAM, mirroring US strategic BTC reserve plan<\/strong><\/em><\/a><\/p>\n Remittances<\/a>, or money sent by migrants to their home countries, play a vital role in Guatemala and the broader region.\u00a0<\/p>\n The Inter-American Development Bank projected<\/a> that remittances to Latin America and the Caribbean would total approximately $161 billion in 2024. Monthly remittances typically range from $131 to $648, representing between 6% and 23% of the sender\u2019s average income.<\/p>\n \u201cRemittances are lifelines in this region, but they\u2019re broken,\u201d Lapchik told Cointelegraph.\u00a0<\/p>\n \u201cGuatemala alone sees $21 billion in remittances every year, and families are losing 6% to 10% of that to fees and delays. These are people sending $300, $400 a month, and they can\u2019t afford to wait days or pay that much just to get money home,\u201d he said, adding:<\/p>\n \u201cCrypto solves this when it\u2019s used the right way. It lets us move money instantly and at a fraction of the cost, integrated into the bank apps people already use.\u201d <\/p>\n Latin America is the second-fastest growing region in terms of crypto adoption, though Guatemala lags behind regional leaders Argentina, Brazil, Mexico, Venezuela and Colombia, according to a 2024 Chainalysis study.<\/p>\n The study cited stablecoins as a primary adoption driver<\/a> in the region.\u00a0<\/p>\n Crypto adoption in Latin America by total value received. Source: <\/em>Chainalysis<\/em><\/a><\/p>\n Lapchik said stablecoins facilitate cross-border transactions more easily, but that \u201cpeople don\u2019t wake up saying, I need a stablecoin.\u2019\u201d\u00a0<\/p>\n \u201cStablecoins are just the best way to make that happen,\u201d he said.<\/p>\nRemittances are lifelines for Latin America<\/h2>\n