Coinbase to allow users in Mexico to cash out crypto in local currency

Coinbase Global, the largest cryptocurrency exchange firm in the US, is launching a pilot phase for a remittance program in Mexico. Coinbase wants to enable crypto recipients in Mexico to cash out their funds using pesos through this initiative.

By launching this program, Coinbase wants to venture into the vast payments remittance industry dominated by firms such as Western Union. The global remittance market is estimated to be worth $700 billion.

Coinbase remittance program in Mexico

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Cryptocurrencies have become highly popular in the remittance market. Cryptocurrencies are decentralized, making it easy for people to make cross-border payments. Moreover, the crypto space has fewer intermediaries than those in the traditional finance sector, making their use fast and convenient.

In a blog post, the company said,

Customers today can already instantly send crypto to recipients in Mexico directly from their Coinbase app. Once sent, the recipient will receive a notification and can immediately view the crypto balance in their Coinbase account.

Coinbase added that users in Mexico that receive cryptocurrencies can generate a redemption code through their Coinbase app. The code can be used to receive cash at 37,000 retail stores in Mexico.

Users can use this service at zero fees until March 31. After this date, customers will be deducted a “nominal fee that’s still 25-50% cheaper” compared to the traditional global payments options. Coinbase added that this pilot phase would be extended to other regions that face high

Move could be a major win for crypto

For a long time, the crypto market has been touted as the future of global money transfers. However, this is yet to gain traction due to the lack of the right infrastructure needed to support such payments.

Ripple is a blockchain firm that has strongly ventured into the payments sector. However, Ripple’s international money transfers have mainly focused on banks and other financial institutions. Retailers have failed to get enough facilitation to support these payments.

This move by Coinbase could be a major turning point. It could boost the adoption of cryptocurrencies in global money transfers, especially in areas where remittance fees are notably high.