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Coinbase: Mexicans Will be Able to Collect in Pesos the Remittances Sent in Cryptos

Cryptocurrency Feb 17, 2022 11:01AM ET
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Coinbase: Mexicans Will be Able to Collect in Pesos the Remittances Sent in Cryptos

  • The exchange platform will allow its clients to collect funds deposited in cryptocurrencies in local currency.
  • This pilot program seeks to capture part of this gigantic market fueled by Mexican workers abroad.
  • From January to November of last year, money transfers to Mexico reached 46.834 million dollars.

Coinbase (NASDAQ:COIN) Global announced the launch in Mexico of a pilot program that will allow recipients of cryptocurrency funds sent from abroad to collect their money in pesos, in a press release posted on its blog.

The American crypto exchange thus seeks to bite into the gigantic global remittance market that in 2020 exceeded 700 billion dollars, according to figures from the World Bank.

The ease of sending and the low cost of transactions in cryptocurrencies such as Bitcoin and other cryptocurrencies are capturing and increasing the number of users in many countries that have adopted digital money as a form of payment.

Through the Coinbase platform, whose main offices operate from San Francisco, California, it will now be possible to send cryptocurrency remittances to family and friends in Mexico, which can be collected in local currency, the company explained.

“We are introducing the ability for recipients in Mexico to withdraw their cryptocurrency holdings in their local currency,” Coinbase said. “The lower price of sending and collecting cryptocurrencies and the flexibility in how funds are stored will allow recipients to keep even more of their money,” it added.

On the Flipside

  • The Mexican remittance market totaled 46,834 million dollars, between January and November 2021, achieving a new historical record. If the shipments from December of last year are added, these funds would easily exceed $50 billion.
  • The accumulated growth of remittances in the country was 26.7% per year, reaching a maximum of 18 years, according to data from the Bank of Mexico.
To withdraw funds sent in cryptocurrencies from the United States and other countries in Mexico, recipients must generate a redemption code that Coinbase will make available in 37,000 retail and convenience stores, as well as financial companies distributed throughout the country.

Among Coinbase’s operating partners that will offer this service are Bansefi, Soriana, Telecomm Telégrafos and BanCoppel, the exchange detailed.

Users will be able to make withdrawals in pesos or keep their funds in crypto. Likewise, the platform offers the possibility for the recipient of the funds to change them to 100 other supported cryptocurrencies, including USDC.

Why You Should Care

  • During the pilot program that will continue until March 31, Coinbase clients in Mexico will not have any surcharge for the use of the service.
“After that date, customers will be charged a nominal fee that will remain 25% to 50% cheaper than traditional cross-border payment solutions”. The cryptocurrency market pilot program could be rolled out to other regions of the world in the future, Coinbase added.

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Coinbase: Mexicans Will be Able to Collect in Pesos the Remittances Sent in Cryptos
 

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