Coinbase has announced that it is now cheaper and easier for Mexican Coinbase users to cash out cryptocurrencies, whichever is on their list, that they receive from other Coinbase users.
In a recent blog post on the exchange, Shilpa Dhar, Vice President of Products, and Moheeth Alvi, Senior Product Manager for Payments, explained that cryptocurrency recipients in Mexico “will be able to withdraw cryptocurrency in their local currency at more than 37,000 locations around the world.” across the country, or save the cryptocurrencies they have received in their Coinbase account.”
The first thing they commented on at the beginning of the post, was the explanation of the problem that Coinbase was trying to solve:
“In 2020, immigrants and expatriates from around the world sent an estimated $700 billion from the US to family and friends in their home countries, according to the World Bank. But today there are many challenges with traditional cross-border payment offerings: sender fees can reach as high as 6-7%, and recipients can only receive cash funds in their local currency, so they don’t have the option to save, grow or protect, which causes your funds to lose purchasing power due to currency depreciation. “
New Coinbase service for Mexicans
Next, they explained how they have improved their cryptocurrency sending and receiving service for Mexicans:
Here’s how it works: Customers can now instantly send cryptocurrency to recipients in Mexico directly from their Coinbase app. Once sent, the recipient will receive a notification and can immediately see the crypto balance in their Coinbase account. From there, the recipient can choose to withdraw or save the funds to their Coinbase account. If they choose to withdraw any part of their balance, they can generate a redemption code from their Coinbase app that can be used to receive cash at 37,000 physical retail outlets and convenience stores located throughout Mexico.”
One of the main places where recipients will be able to withdraw money in fiat is OXXO, which is a Mexican chain of convenience stores.
Coinbase Mexicans can try this new service for free until March 31, 2022, but after that date, the service will start to have a price that they will have to pay if they want to keep it. According to the publication, the rate for this service will continue to be cheaper than traditional cross-border solutions, which are between 25% and 50% cheaper.
Coinbase also mentioned that it is considering expanding this service to other countries where similar pain points exist.
Disclaimer: The content and links provided in this article are for informational purposes only. islaBit does not offer legal, financial or investment recommendations or advice, nor does it replace the due diligence of each interested party. islaBit does not endorse any investment offer or the like promoted here.
Share it with your friends!