Coinbase (NASDAQ: COIN) said on Tuesday it is launching a program that allows cryptocurrency recipients in Mexico to cash out their funds in Pesos — the country’s official currency — a move that could shake up to $700 billion global remittance market.
Bitcoin and other cryptocurrencies are considered an important way of transacting between people overseas because of the borderless and decentralized nature of cryptocurrencies. Sending cryptocurrencies requires neither an intermediate nor a bank account.
Crypto recipients in Mexico will be able to generate a redemption code on their Coinbase platform that will be used to receive money at over 37,000 convenience stores across Mexico, according to a blog post by the cryptocurrency exchange.
Through March 31, the service will be free. After that, customers will pay a “nominal fee that’s still 25-50% cheaper” than traditional international payment options, according to Coinbase.
Coinbase added that the pilot program will begin in Mexico and the firm will consider other regions over time.