Coinbase says that cryptocurrencies offer users faster, easier, and more cost-efficient ways of sending money abroad. Since launching international transfer services in Mexico in February the cryptocurrency exchange platform has seen a steady rise in demand for the service.
For example, Coinbase customers in Mexico nearly doubled in a period of just a few months. September in particular saw an all-time high, with customers in Mexico receiving hundreds of thousands of dollars in transferred funds.
Crypto for International Money Transfers
International transfers exceed half a trillion dollars annually with traditional transfer methods often being slow and inefficient, frequently requiring days or even weeks to settle. In addition, they come with hefty fees averaging just over 6%.
Cryptocurrencies on the other hand offer a speedy, accessible, and cheaper way of transferring funds across the world. All one needs is access to cryptocurrencies is internet access through a smartphone or computer. Because cryptocurrencies are digitally-native and powered by blockchain technology, they can be transferred around the world instantly so anyone can access funds seconds after they’re sent.
Another perk is that there is no need for costly intermediaries like banks thus making transactions cheaper. In terms of flexibility, with cryptocurrencies, senders and receivers can choose from hundreds of cryptocurrencies to send, hold, or trade.
For example, USD Coin (USDC) is the second most frequently-sent asset behind Bitcoin. With it. US senders can send this stablecoin which is pegged to the US Dollar and backed by reserve assets, so that recipients can save funds in US dollars without needing a US bank account. Receivers have immediate access to their funds and can choose to cash out or hold the funds in their secure Coinbase account.
With Coinbase customers can send crypto to any email address in over 100 countries instantly and for free. In fact, more than 70% of Coinbase senders have completed more than one international transfer and replacing their current transfer methods. During the eight-month period, Coinbase customers in Mexico were able to cash out their crypto to pesos at over 30,000 locations like BanCoppel and Walmart.
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