According to Coinbase, cryptocurrencies offer users faster, easier and cheaper ways to send money abroad. Since the launch of international remittance services in Mexico in February, the cryptocurrency exchange platform has seen a steady increase in demand for the service.
For example, Coinbase’s customers in Mexico have almost doubled in just a few months. September in particular was an all-time high, with clients in Mexico receiving hundreds of thousands of dollars in funds transferred.
Crypto for international money transfers
International remittances exceed half a trillion dollars annually, and traditional remittance methods are often slow and inefficient, often taking days or even weeks to complete. Additionally, they come with hefty fees averaging just over 6%.
Cryptocurrencies, on the other hand, offer a fast, accessible, and cheaper way to transfer funds around the world. All it takes to access cryptocurrencies is internet access via a smartphone or computer. Because cryptocurrencies are digitally native and powered by blockchain technology, they can be instantly transferred around the world, allowing anyone to access funds seconds after they are sent.
Another benefit is that it eliminates the need for expensive middlemen like banks, making transactions cheaper. In terms of flexibility, cryptocurrency senders and receivers can choose from hundreds of cryptocurrencies to send, hold, or trade.
For example, USD Coin (USDC) is the second most sent good after Bitcoin. In order to. U.S. senders can ship this stablecoin, which is pegged to the U.S. dollar and backed by currency reserves, allowing recipients to save U.S. dollar funds without requiring a U.S. bank account. Recipients have instant access to their funds and can withdraw or hold the funds in their secure Coinbase account.
With Coinbase, customers can send crypto to any email address in 100+ countries instantly and for free. In fact, more than 70% of Coinbase senders have made more than one international transfer, replacing their current transfer methods. During the eight-month period, Coinbase customers in Mexico were able to cash out their cryptos in pesos at over 30,000 locations including BanCoppel and Walmart.
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