Coinbase, the leading U.S. exchange has now announced that it will allow Mexican remittance recipients to cash out funds they have received in local currency. This is the company’s first entry into Mexico, where customers can cash out in over 37,000 convenience and other stores.
Coinbase is a platform that allows Mexicans cash out cryptocurrency remittances in Pesos
Coinbase, the popular cryptocurrency exchange, announced this week that it will be opening its doors to Mexican remittances. The exchange allows customers to send cryptocurrency to anyone in the world. However, the new feature will allow remittance recipients to cash out their funds in local currency. In this instance, the Mexican peso.
Coinbase said it had arranged to exchange these remittances in over 37,000 convenience stores across the country. By generating an unique redemption code within the app, remittance receivers can make transactions. Coinbase is trying to remove friction from crypto-to fiat exchange.
Coinbase believes that cryptocurrency use will make the company more competitive than traditional remittance options. You can use this tool until March 31, 2022 for free.
Sending money abroad and paying fees
Coinbase will begin charging fees for these services after the above date. The exchange announced it will charge “a nominal fee that’s still 25–50% cheaper than traditional cross-border payment solutions.”
It stated that remittances were a worldwide issue. This hint at future expansions of the service. The exchange said:
While we’re starting in Mexico, over time we’ll consider other regions where customers face similar challenges.
Multi-billion-dollar businesses are involved in remittances across the U.S./Mexico border. The World Bank and Bank of Mexico report that Mexican families have received $42.17 trillion in remittances over the first 10 months of 2021. Most of this money came from the United States. Mexico received $52 billion in remittances, with the majority of these funds coming from America.
What do you think about Coinbase’s local currency cash-out initiative for crypto remittances in Mexico? Comment below.
Image credit: Shutterstock, Pixabay, Wiki Commons, Burdun Iliya
DisclaimerThis information is provided for educational purposes only. It does not constitute an offer, solicitation, or recommendation of any company, products or services. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. The author and the company are not responsible for any loss or damage caused by the content or use of any goods, services, or information mentioned in the article.
