Electronic transfers

Coinbase Will Allow Remittance Recipients In Mexico To Collect In Local Currency CryptoBlog

Coinbase, a leading exchange based in the United States, has announced that it will now allow recipients of funds in Mexico to cash out funds received through its service in the local currency. This is the company’s first foray into Mexico’s remittance industry, allowing customers to withdraw at more than 37,000 convenience stores and other locations across the country.

Coinbase Allows Mexicans to Take Crypto Remittances in Pesos

Popular cryptocurrency exchange Coinbase announced this week that it is making its first foray into remittances in Mexico. While the exchange already allowed customers to send cryptocurrency to any other Coinbase user around the world, it will now offer remittance recipients the ability to cash out funds in local fiat currency. , in this case, the Mexican peso.

Coinbase announced that it has arranged for these remittances to be redeemed at more than 37,000 convenience stores and other locations across the country. Recipients of the funds will be able to complete the transactions by generating a unique redemption code in the app. This move is the result of Coinbase seeking to eliminate friction in crypto-fiat exchanges.

Coinbase expects this use of cryptocurrency to allow the company to compete with traditional remittance alternatives already in the market. The use of this tool will be free until March 31, 2022.


Discounts and fees

However, after the aforementioned date, Coinbase will start charging fees on these services. The exchange announced that it would charge “nominal fees that remain 25-50% cheaper than traditional cross-border payment solutions.”

The exchange says it recognizes that remittances are a global problem, hinting at possible future expansion of the service to other countries. Regarding this, the exchange said:

As we begin in Mexico, over time we will consider other regions where customers face similar challenges.

The remittance trade in the US/Mexico corridor is a multi-billion dollar business. According to figures from the World Bank and Banco de Mexico, Mexican families received $42.17 billion in remittances in the first ten months of 2021, with most of those funds coming from the United States. In October alone, nearly $5 billion was sent to Mexicans, mostly via money orders and wire transfers.

What do you think of Coinbase’s local currency withdrawal initiative for crypto remittances to Mexico? Tell us in the comments section below.

sergio@bitcoin.com'

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game, entering the cryptosphere when the price surge happened in December 2017. Having a background in computer engineering, living in Venezuela and impacted by the cryptocurrency boom at social, it offers a different point of view. on the success of crypto and how it helps the unbanked and underserved.

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