One of the biggest P2P cryptocurrency exchanges in the world, Localbitcoins, is now allowing its users to purchase Bitcoin with other cryptos, in a departure from its earlier Bitcoin-only approach. Last week, the company announced that they will now allow listings leveraging Tether, Polkadot, Cardano, Bitcoin Cash, USD Coin, Chainlink, and Dogecoin as payment methods.
Localbitcoins also added several new fiat-based payment methods.
The peer-to-peer crypto exchange also added several new fiat-based payment methods that can be used internationally and others that can only be used in specific countries. The decision marks a clear departure from the traditional Bitcoin-only stance the company has had since its creation and effectively creates the possibility for arbitrage with altcoin prices on the platform, albeit not as directly as in a traditional exchange. Localbitcoins is one of the first P2P exchanges and, apart from implementing more strict KYC measures associated with the use of the platform, it has not changed much.
Localbitcoins fights to stay in the competition.
One of the reasons for updating its payment method options could be the loss of relevance the exchange is facing in emerging markets like Venezuela, where the peer-to-peer exchange has been moved from being the preferred way of buying bitcoin to just another good option in the market. Evidence of this is dwindling volumes of sales can be seen in Coin Dance statistics. This was also exacerbated by the arrival of a new P2P alternative market: Binance P2P, which is backed by the exchange and has attracted many of Localbitcoins’ merchants and customers in the last two years. Other less privacy-invasive options have emerged, such as Bitcoin.com Local, where no KYC is required for direct P2P trade.