The Reserve digital wallet has announced that it will suspend deposit and withdrawal services with fiat currencies for six Latin American countries starting next month. The decision comes as a result of complications with their banking partners. Gabriel Jiménez, executive director of RPay, Reserve’s instant payment service, stated that the national currencies affected will be the Argentine pesos, Colombian pesos, Peruvian soles, Venezuelan bolívares, and US dollars. The suspension will impact Argentina, Venezuela, Colombia, Peru, Ecuador, and Panama. Users will have until August 3 to carry out relevant operations with national currencies before it becomes impossible. Only operations with Mexican pesos will be allowed after that date.
The CEO of RPay mentioned that the suspension is due to sustainability issues associated with working with banking partners that process cryptocurrencies. He explained that banks are wary of cryptocurrency customers due to concerns about regulatory scrutiny, which worsened after the FTX crisis. Starting next month, Reserve will only allow stable cryptocurrency deposits and withdrawals in the affected countries, including USD Coin (USDC), tether (USDT), DAI (DAI), bitcoin, and ether (ETH).
Gabriel Jiménez emphasized that the suspension is an indefinite pause and not an end to operations. He stated that the Reserve team is working on multiple fronts to consolidate their global strategy. For Venezuela, the company is actively seeking a banking partner to resume services, as they have received a license from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury. Jiménez acknowledged that providing financial services in Venezuela is challenging due to sanctions, but the license allows them to offer a more reliable and sustainable service.
The article also highlights the advantages of Bitcoin in times of centralized financial systems. Reserve’s limitations due to regulations serve as a reminder of Bitcoin’s decentralized nature, where transactions can be made without the need for authorizations or trusted third parties.