International transfers on Coinbase are a faster, easier, and more cost-efficient way to send funds around the world

TLDR: Cryptocurrencies like USD Coin (USDC) enable a better way of sending funds abroad. Since Coinbase launched the ability for customers in Mexico to cash out their crypto¹, we’ve seen steady growth in the value of funds sent and cashed out and have seen active Coinbase customers in Mexico nearly double in just a few months.

By Surojit Chatterjee, Chief Product Officer

Product

, November 1, 2022

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Cryptocurrencies offer a faster, easier, and more cost-efficient way of sending funds abroad. Since Coinbase launched international transfers in Mexico, we’ve seen steady growth in the value of funds sent and cashed out and have seen active Coinbase customers in Mexico nearly double in just a few months. This is just a start — we’re committed to making it as efficient, fast, and accessible as possible for anyone to send funds around the world.

Today’s transfers are slow and expensive, but sending crypto is instant and cost-efficient

As long as people have moved around the world, they’ve sent funds home. International transfers now exceed half a trillion dollars annually and often represent a large fraction of developing countries’ economies.² Today’s transfer methods rely on traditional payment method rails that are slow and inefficient, frequently taking days or even weeks to settle. Plus, they’re expensive — with average fees of just over 6%, over $35 billion of the money flowing into low and medium-income countries in 2021 was spent in fees.³

Cryptocurrencies enable a faster, more accessible, and cheaper way of transferring value for everyone across the world. All you need to access cryptocurrencies is internet access via a smartphone or computer. Digitally-native and powered by blockchain technology, they can be transferred around the world instantly so you can access funds seconds after they’re sent. There’s no need for costly intermediaries like banks so crypto transfers can be much cheaper. Finally, crypto offers greater flexibility than cash — senders and receivers can choose from hundreds of cryptocurrencies to send, hold, or trade.

US customers are increasingly sending Bitcoin, USDC, and more to Mexico

Earlier this year we began enabling customers in Mexico to cash out their crypto to pesos at over 30,000 locations like BanCoppel and Walmart. Since then, customers have been increasingly using Coinbase’s international transfers to Mexico: September was an all-time high, with customers in Mexico receiving hundreds of thousands of dollars in transferred funds. More than 70% of senders have completed more than 1 international transfer, replacing their current transfer methods and fueling continued growth.

USD Coin (USDC) is the second most frequently-sent asset behind Bitcoin. US senders are sending this stablecoin, 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 and protect their funds from devaluation of the peso. Receivers have immediate access to their funds and can choose to cash out or hold the funds in their secure Coinbase account. About 70% of customers in Mexico cash out for immediate use, while the rest hold the funds as crypto. Sending crypto around the world is always fee-free on Coinbase, and today there are no fees to cash out.⁴ This means that Coinbase customers have saved tens of thousands of dollars on fees.

The path to economic freedom for all

Cryptocurrencies will drastically transform the international transfers space by letting recipients keep more of their money, avoid wasting time in long bank lines, and access more financial services that can empower them to create a better life for themselves and their families. Get started at coinbase.com/international-transfers.

To learn more about how crypto is disrupting traditional transfers, check out Coinbase Institute’s recent research.

¹We partner with Remitly, Inc., a Delaware corporation licensed and operating out of the US to enable cash pick up at licensed cash pick up providers in Mexico.

²World Bank Press Release, https://www.worldbank.org/en/ news/press-release/2021/11/17/ remittance-flows-registerrobust-7-3-percent-growthin-2021.

³World Bank Blog, https://blogs. worldbank.org/peoplemove/ global-remittance-flows-2021- year-recovery-and-surprises.

⁴Coinbase may charge cash-out fees in the future.

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