The logo for Coinbase Global Inc, the biggest U.S. cryptocurrency exchange, is displayed on the Nasdaq MarketSite jumbotron and others at Times Square in New York, U.S., April 14, 2021.
The logo for Coinbase Global Inc, the biggest U.S. cryptocurrency exchange, is displayed on the Nasdaq MarketSite jumbotron and others at Times Square in New York, U.S., April 14, 2021. Reuters / SHANNON STAPLETON

Coinbase Global on Tuesday said it is launching a pilot program to allow cryptocurrency recipients in Mexico to cash out their funds in pesos, a move aimed at shaking up the $700 billion global remittance market.

Cryptocurrencies such as bitcoin are seen as an important way for people to send money to family and friends overseas because of the borderless nature of crypto and fewer intermediaries than traditional currency transfers.

Crypto recipients in Mexico can now generate a redemption code on their Coinbase app that can be used to receive cash at 37,000 retail and convenience stores across Mexico, the cryptocurrency exchange said in a blog post on Tuesday.

The service will be free of charge through March 31, after which customers will be charged a "nominal fee that's still 25-50% cheaper" than traditional international payment options, Coinbase said.

Coinbase added that the pilot program will begin in Mexico and the company will consider other regions over time.