Coinbase Launches Crypto Remittance Pilot for Mexico

Coinbase is piloting a remittance program aimed at recipients living in Mexico as the exchange seeks new sources of revenue

article-image

Source: Nasdaq

share

key takeaways

  • The service allows users to cash out at 37,000 physical retail outlets and convenience stores located across the country
  • Coinbase claims its offering will be 25% to 30% cheaper than traditional methods following its fee-free trial period

US cryptocurrency exchange Coinbase has begun trialing a remittance pilot program for recipients based in Mexico as it seeks to capitalize on a multi-billion dollar market dominated by the likes of MoneyGram and Wise.

In a blog post on Tuesday, the exchange — led by CEO Brian Armstrong — said it was introducing an “instant” means of cashing out crypto sent to friends and family south of the US border.

Once the crypto has been sent, recipients will receive a message via their Coinbase app asking them to choose between cashing out or saving the funds in their Coinbase account, the exchange said.

Coinbase’s Mexico crypto remittance pilot

Should the recipient choose to cash out, they can generate a code from their Coinbase app which is redeemable for cash at 37,000 physical retail outlets and convenience stores located across Mexico, the post reads.

Should they choose to keep the crypto on the app, recipients will be able to either hold their assets or convert and invest them.

“That includes USDC, a stablecoin pegged to the US Dollar, which will help the recipient hedge against any devaluation of their local currency,” Coinbase said.

The service won’t incur any charges until March 31, 2022, at which time the exchange said its option would still be 25% to 30% cheaper than traditional cross-border payment methods.

Coinbase’s concerted push into the remittance market can be viewed as an attempt to buoy headwinds incurred from recent volatility in the crypto markets. The publicly-listed exchange saw a decline in net revenue from $2 billion in Q2, 2021 to $1.2 billion in Q3, according to quarterly earnings.

The global remittance market size was valued at over $700 billion in 2020. That value is projected to balloon to around $1.22 trillion by 2030, according to data by Allied Market Research.

Coinbase also said Tuesday it was looking to expand globally and that part of its mission was to advance “economic freedom” by providing crypto services to the world’s 1.7 billion underserved or underbanked.

“We recognize this is a global issue. And while we’re starting in Mexico, over time we’ll consider other regions where customers face similar challenges,” Coinbase said.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space

article-image

Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?

article-image

Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month

article-image

It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet

article-image

Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend

article-image

Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million