The leading cryptocurrency exchange in the US, Coinbase, has announced today that it has launched a trading program that enables crypto recipients in Mexico to cash out their funds in pesos. Coinbase aims to shake up the $700 billion global remittance market with the latest development. Coinbase became the first crypto exchange to get listed on Nasdaq.
Immigrants from around the globe sent around $700 billion from the US to their home countries.
According to statistics by the World Bank, in 2020, ex-pats and immigrants from around the globe sent around $700 billion from the US to their families and friends back in their home countries. However, several challenges still exist with today’s traditional cross-border payment offering. For example, sender fees can go up 6 to 7%, and recipients can only receive money in cash in their local currency. Furthermore, they do not have an option to save, grow or protect their funds from losing purchasing power due to inflation.
Coinbase allows recipients in Mexico to cash out their cryptocurrency holdings in their local currency.
Coinbase has introduced the ability for recipients in Mexico to cash out their cryptocurrency holdings in their local currency. Low transaction fees for sending and cashing out cryptocurrency and flexibility in how to store funds would allow recipients to keep even more of their funds. Cryptocurrencies like Bitcoin are regarded as an important way for people to send funds to friends and family abroad due to the borderless nature of cryptocurrency and fewer intermediaries than traditional currency transfers. Consumers in Mexico can now convert cryptocurrency sent into local fiat currency at over 37,000 physical retail outlets and convenience stores across the nation.
