Bitfinex has rolled out a peer-to-peer exchange servicing clients focusing on Argentina, Venezuela, and Colombia. The launch is aimed at boosting financial freedom and inclusion, the firm said in a statement.
“By offering a reliable and efficient platform for P2P token trading, we are empowering our customers to engage with the marketplace in a way that affords maximum convenience based on their needs and preferences,” Bitfinex CTO Paolo Ardoino stated.
Users will be able to transact directly with one another outside of the Bitfinex platform by buying and selling Bitcoin [BTC], Tether tokens [USDt and EURt], Tether Gold [XAUt], and Ether [ETH].
Later this year, the exchange will also introduce a smartphone version of Bitfinex P2P, along with other features targeted at improving the user experience.
For those new, a P2P service enables two parties to communicate directly and on their own terms without the intervention of a third party.
Once seen as the backbone of the crypto ecosystem, peer-to-peer trading has come under intense pressure as a result of heightened regulatory scrutiny.
One of the earliest P2P exchanges known to exist, LocalBitcoins, announced its closure on February 9, 2023, after ten years of operation.
Two months later, Paxful, another prominent peer-to-peer crypto exchange with more than 11 million customers, announced its temporary suspension.
CEO Ray Youssef cited key staff exits and regulatory challenges in the industry as reasons behind the decision.
Bitfinex’s P2P Might Bridge The Gap Left By Others
The departures of the two leading players were a huge setback as P2P platforms have been crucial in fostering the growth of cryptocurrency usage, particularly in developing countries, and in providing financial services to the unbanked.
With its most recent step, Bitfinex hopes to increase access to financial services related to digital assets in Latin America and fill the gap left by the closures of P2P exchanges LocalBitcoin in February and Paxful in April.
Last year, Bifinex in collaboration with leading stablecoin issuer Tether and Hypercore, a peer-to-peer data network announced the launch of a fully encrypted video-calling application dubbed Keet.
The free video-calling app employs peer-to-peer connections to facilitate real-time audio/video calls, text chat, and file sharing.
The new feature is powered by an innovative technology called Distributed Holepunching that allows users to find and connect to each other using only cryptographic key pairs upon authorization.