Brazilian Exchange Bitpreco to Expand to Banking Services; Bets on Cashback to Counter Crypto Fears

Bitpreco, a Brazilian cryptocurrency exchange, has decided to extend 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 purchasing cryptocurrencies in today’s uncertain market.

While several traditional banking institutions are now offering or considering offering cryptocurrency-related services in Brazil, crypto-centric applications are also seeking to include traditional financial instruments in their services 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 objective of this inclusion is to drive more users to crypto through the offering of less niche-oriented services. On this, Pimenta explained:

Digital banking was a great success in Brazil. It is an extremely easy way to bring users to the crypto world 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 forecast an increase of 50% in its user base with this move, having already registered a five-fold increase in user registrations from 2020 to 2021.

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

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

A lot of people are afraid of buying cryptocurrency, but they wouldn’t 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 on the structure of this plan. However, he did say that the institution might be including bitcoin, ether, and solana among the currencies offered as rewards to customers using cards issued by the company.

What do you think about Bitpreco and its strategy to boost cryptocurrency adoption? Tell us in the comments section below.