BitPagos Raises Funds to Bring Bitcoin to Latin America

June 17, 2014 18:01 UTC
BitPagos has raised more funds from Barry Silbert and others to bring Bitcoin to South America.

BitPagos, the company that is trying to help merchants in developing countries who wish to escape their local fiat currencies, has announced a new round of investments from the likes of Pantera Capital, Tim Draper, Barry Silbert, Boost Bitcoin Fund, and more. This merchant processing service first launched out of the Boost.vc startup incubator, and it has quickly turned into one of the most promising companies in the business when it comes to increasing the everyday use of Bitcoin around the world. While many other Bitcoin startups are focusing on possible customers in the United States and other parts of the developed world, BitPagos has taken an interest in helping merchants in Latin America and various developing nations around the world when it comes to gaining access to bitcoins through the sale of their own goods and services.

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BitPagos raises $600,000

BitPagos was able to raise just over $150,000 in 2013, but this latest round of funding has quadrupled those numbers from last year. With $600,000 raised in their most recent round of funding, BitPagos is looking to expand their business and keep up with their operational demands. The company claims they are scaling up with more merchants on a regular basis, so it’s important to keep the money flowing in as they help new people in developing nations escape their bolivars, pesos, and other fiat currencies as quickly as possible.

How Does BitPagos Work?

BitPagos CEO Sebastian Serrano likes to describe his company as the “opposite of BitPay.” In other words, they are helping the merchants who wish to sell their fiat currency immediately after a sale rather than their bitcoins. Although many pundits have correctly pointed out the bitcoin’s volatility when compared to dollars and euros, the reality is that things don’t look so bad when compared to some of the forms of money in South America, Africa, and other parts of the world. Serrano’s goal is to help people in these developing nations by offering them a much easier entry point into the Bitcoin ecosystem. It is actually rather difficult to find bitcoins to purchase in some of these countries due to the low number of bitcoins that were originally mined in these parts of the world.

Developing Countries are Vital for Bitcoin Adoption

If the Bitcoin experiment is going to turn into a success story, then companies like BitPagos are going to be at the forefront of adoption by the general public. At the end of the day, it really doesn’t make sense for people in the United States or Europe to adopt a rather volatile currency right now when their dollars and euros seem to be doing relatively well. One of the main changes that needs to happen in the Bitcoin world is for more liquidity to enter the market. This is one point where the Bitcoin evangelists and skeptics actually agree with each other. Creating new use cases for the currency is the main changes that will help the Bitcoin economy more than anything else, and the good people at BitPagos are ecstatic to be on the front lines of that battle.

@kyletorpey

Kyle is a freelance Bitcoin writer and the Marketing Director for Bitcloud. His work has been featured on Business Insider, VICE Motherboard, Let's Talk Bitcoin, and RT's Keiser Report . You can follow him on Twitter (@kyletorpey) or send him an email.