Coinbase launches remittances programme to take on Western Union with cryptocurrencies
- The free pilot programme allows for sending crypto funds to friends and family in Mexico, where tokens can be converted into pesos at participating locations
- The service will be fee-based after March 31, Coinbase said, but still 25 to 50 per cent cheaper than traditional transfers
Coinbase said it has launched a free pilot programme for sending crypto funds to friends and family in Mexico. Receivers can convert the tokens into pesos at participating locations across the country or invest the funds into a Coinbase account. The service will become fee-based after March 31.
Coinbase didn’t disclose the cost but said in a blog post it will be “still 25-50 per cent cheaper” than traditional cross-border transfers.
“We recognise 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 said in the blog post.
The push into remittances is part of Coinbase’s strategy to diversify its revenue amid a rocky period for cryptocurrencies that has sent trading volumes on exchanges plummeting. Coinbase is working to launch a marketplace for non-fungible tokens and is rolling out additional services in the area of decentralised finance.
