First cryptocurrency exchange, Coinbase has announced that it has launched a trading program that allows crypto recipients in Mexico to cash out their funds in pesos. Coinbase wants to disrupt the $700 billion global remittance market where immigrants around the world send money from the United States to their home countries.
For Mexicans, the low transaction fees for sending and cashing in cryptocurrency provide flexibility in how they receive and store funds. Cryptocurrencies like Bitcoin are considered an important way for people to send funds to friends and family overseas due to the borderless nature of cryptocurrency and the small number of intermediaries than traditional currency transfers.
In 2020, immigrants around the world sent around US$700 billion to family and friends in their home countries, according to the World Bank. However, existing challenges with today’s traditional cross-border payment offering mean that fees can be as high as 7% per transaction, and due to inflation, many are unable to save. or protect their funds from purchasing power.
How it works
Today, customers can already instantly send crypto to recipients in Mexico directly from the Coinbase app. Once these funds are received, the recipient can choose to cash out or save funds to their Coinbase account. If they choose to cash out part of their balance, they can generate a redemption code from their Coinbase app that can be used to receive cash at 37,000 brick-and-mortar outlets and convenience stores across Mexico. .
Coinbase has long offered a way to instantly send crypto to family and friends anywhere in the world for free, and allow recipients to invest in any of the over 100 cryptocurrencies we support. Coinbase customers in Mexico will be able to withdraw their crypto using this new service for free until March 31, 2022. After that date, customers will be charged a nominal fee which is still significantly cheaper than traditional cross-border payment solutions. Along with this latest development, Coinbase became the first crypto exchange to list on Nasdaq. Coinbase is on a mission to increase economic freedom globally and over time will consider other regions where people face the same challenges.
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