It's likely game over for Western Union and a Blockbuster moment as Coinbase offers FREE Crypto Cashouts For Transfers to Mexico at more than 37,000 locations across the country (via Remitly, who are partnered with Bansefi, BanCoppel, Oxxo, Sorina and Tel

As widely reported, Coinbase is introducing a new service which will almost certainly kill Western Union's highly profitable (and overly expensive) remittance service to Mexico.

Under this new arrangement Coinbase will let recipients in Mexico cash out their funds FOR FREE at more than 37,000 stores across Mexico. But this is merely a first step and Coinbase are planning to roll this program out to other countries.

This is a BIG deal and was actually covered (from a different perspective) in the Financial Times today:

Consider international payments, which are inherently complicated. They involve multiple currencies, payment systems operating on diverse protocols and institutions governed by varying regulations. So, cross-border payments tend to be slow, expensive and difficult to track in real time.

New technologies spawned by the cryptocurrency revolution are making cheaper and practically instantaneous payment and settlement of transactions feasible. This will alleviate payment-related frictions in international trade. Economic migrants sending remittances back home will also benefit.

Changes are afoot in foreign exchange markets, too. For instance, transactions between pairs of emerging market currencies are becoming easier. China and India will no longer need to exchange their respective currencies for dollars to conduct trade. Rather, exchanging renminbi for rupees directly will become cheaper. Consequently, the reliance on “vehicle currencies”, particularly the dollar, will decline.

Often on this sub, people ask what is the ACTUAL utility of crypto ... that there must be far more than NFTs, Gaming, etc.

International remittance at low to zero cost has to be one of the best uses of crypto payments. Migrant workers (whether Pakistanis in Dubai or Mexicans in the US) are typically among the most underpaid in the world. For them, a $30 Western Union fee is a BIG deal.

Coinbase are doing this the right way and hopefully all the other major exchanges will follow. It's good news for workers, but amazing news for utilisation of crypto.

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EDIT:

Had a quick look at just how bad WU is and it's bad: more than $40 to send $1,000 .... and 4% over that.

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