2023-07-03 21:29:59
The Reserve digital wallet reported on July 3 that deposit and withdrawal services with fiat currencies will be suspended for at least six Latin American countries starting next month. The decision is made due to complications with the banking partners with whom they operate.
so it Indian Gabriel Jiménez, CEO of RPay, Reserve’s instant payment service. In a press release, the executive pointed out that the national currencies that will stop being loaded and withdrawn on the platform are the Argentine pesos, Colombian pesos, Peruvian soles, Venezuelan bolívares and US dollars.
In this sense, the measure will affect six Latin American countries. These are Argentina, Venezuela, Colombia, Peru, Ecuador and Panama.
Deposit and withdrawal services can be used in these nations until August 3. That is, the users they have exactly one month to carry out the relevant operations with national currenciesbecause after the term, it will be impossible.
In this sense, only operations with Mexican pesos can be executed without problems on the Reserve platform after the date.
The reasons for the suspension of the deposit and withdrawal service, according to the CEO of RPay, respond to “sustainability issues associated with banking challenges of working with companies that process cryptocurrencies.” He means they have problems with bank partnerss because they are also a bitcoin (BTC) and cryptocurrency wallet.
As Jimenez put it, “banks are inclined to untie cryptocurrency customers due to concerns about regulatory scrutiny.” All this worsened after the crisis generated by FTX, one of the largest exchanges in the market that plummeted in November 2022.
In that order of ideas, starting next month, Reserve will only allow stable cryptocurrency deposits and withdrawals in these six countries, such as USD Coin (USDC), tether (USDT), DAI (DAI) and eUSD. The services will also be enabled for bitcoin and ether (ETH), the cryptocurrency of the Ethereum network.
According to Jiménez, the suspension of services it is an “indefinite pause” and not an end of operations.
“An indefinite hiatus”
“We are not giving up, but at the same time, we do not have a date to reactivate charges and withdrawals in local currency for Venezuela, Argentina, Colombia, Peru, Ecuador and Panama,” the manager admitted.
Jiménez indicated that the Reserve team it is already advancing on “multiple fronts” to “consolidate our global strategy”. He also admitted that they have been “trying to avoid this situation” for a year.
“We will continue fighting to restore and improve our services in Latin America. But today, our best option is to go back, rebuild and come back stronger with new alliances and more solid foundations,” Jiménez argued.
Looking for a partner to operate in Venezuela
Gabriel Jiménez also reported that they only require a banking partner to operate with them. to resume their services in Venezuela. The foregoing, since they received a license from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury, which allows them to maintain their operations in the Caribbean country.
As you said, that license allows Reserve offer a “more reliable and sustainable” service to Venezuelans. “Therefore, our main objective in Venezuela now will be to establish a relationship with a direct banking partner, aligning our updated global strategy. Without it, we will not offer liquidity in bolivars”, he indicated.
Jiménez recalled that due to the sanctions currently weighing on Venezuela, the provision of financial services in that nation has complications. So much so that many financial services companies linked and not linked to cryptocurrencies have stopped operating in the country. Among them, UpHold, Skrill, Paxful, and the extinct Bittrex exchange.
“The existence of said license does not exonerate Rpay from its compliance obligations, but it significantly reduces the risks of non-compliance, which allows Rpay to continue its operations in the country with confidence,” Jiménez asserted.
If it’s not your keys, it’s not your bitcoins
Due to problems with centralization and the fiat system, Reserve is now unable to continue serving Venezuelan, Panamanian, Argentinean, Colombian, Peruvian, and Ecuadorian customers. Auspicious time to remember Bitcoin and its foundations.
Bitcoin, being digital money, can be transferred and sent to anyone. It can also be exchanged for fiat money, if required. The difference is that This technology does not require authorizations to work.
This does happen in the fiat system. Tools like those of Reserve, which give space to money born from central banks, have to comply with the obligations and regulations of the countries where they operate. Otherwise, they are subject to sanctions by the rulers.
This is not seen in Bitcoin. With the first cryptocurrency you can make transactions between peers, exchanges or simply save, without a trusted third party or authority that can intervene and restrict a certain service.
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