Global crypto exchange Coinbase (COIN) has enabled a cash-out service in Mexico to convert crypto into fiat and allow users to save on fees.
- Coinbase said Tuesday that users in Mexico can now convert crypto sent to them by other users into Mexican pesos at more than 37,000 physical retail outlets and convenience stores across the country. The company added that users can also save or invest their crypto in a Coinbase account.
- If they choose to cash out any part of their balance, they can generate a redemption code from their Coinbase app that can be used to receive cash at those physical stores located across Mexico.
- The cash-out service will remain free of charge between Tuesday and March 31. After that date, an undisclosed nominal fee will be applied, which will remain between 25% and 50% cheaper than traditional cross-border payment solutions, the company added.
- “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’s vice president of Product, Shilpa Dhar, said in a blog post.
- According to the World Bank, immigrants and expatriates based in the U.S. sent approximately $700 billion to their home countries in 2020, Coinbase said, adding that fees for remittance payments can reach up to 7%.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.