š® How I Obtained Mexican Pesos In Cash Using The Digital Dollar USDC Pedro Chira (Senior Manager Circle) š®
š Anyone traveling in the world can do this using Pedros methods below, using nothing more than Coinbase, Stellar and Moneygram. ~D
š Here Is The Problem:
It always starts with a pain point. You are heading to a new country and need cash. The truth is that in most places around the world cash is still (and will remain) king. Thereās no way around it.
There are a million methods to get your hands on local currency, all with its pros and cons. Do you exchange your local currency (in this case, US dollars) with your bank before you depart? Or do you exchange your USD at the airport? Or maybe you wait until you land and exchange your cash USD there, either at the airport or at a currency exchange in town? How about at the hotel or maybe you decide to just take out cash from an ATM using your debit card? Airports seem like they would give you a bad exchange rate, but thatās the case with hotels and with your banks back home as wellā¦
š Here Is The Solution:
On this trip to CDMX, I did none of the above. Instead, I exchanged my digital dollars (USDC) for pesos. Hereās how I did it:
1ļøā£ I purchased some USDC-on-Stellar on Coinbase, my preferred exchange. Coinbase, or any major crypto exchange, will ask you to verify your identity and connect your bank account/debit card to their platform to do these cryptocurrency purchases.
2ļøā£ I downloaded the Vibrant wallet, a Stellar wallet. You can also use other Stellar wallets like Lobstr or Decaf. I sent my USDC from Coinbase to my Vibrant wallet, it took about a second to settle.
3ļøā£ In the Vibrant wallet app, I selected the withdraw option: Cash pick-up at MoneyGram International. It transparently showed me the exchange rate on the screen and the exact amount Iād get in cash - and at this moment, MoneyGram is not charging any fees for this service (zero additional intermediary/bank fees!)
4ļøā£ The app asked for my ID info, and then it provided a MoneyGram reference number.
5ļøā£ I took my ID (passport) to a MoneyGram location and provided the reference number. In Mexico, I found the Banco Azteca locations located inside of Elektra stores to be the most convenient, they are open 9am-9pm, which is longer than the typical banking hours. Also they are a true bank, so they have cash on hand for larger amounts.
6ļøā£ The MoneyGram teller makes me sign a receipt and then hands me my Mexican pesos. I essentially sold my USDC to MoneyGram in exchange for Mexican pesos.
As a Peruvian, a Latin American, and a first generation US immigrant I think about FX rates all the time. I think about sending money to my family in Lima for birthday gifts, I think about the safe and legal ways to do this, I think about fees, the amount Iām able to send, and about the speed of it all. This real and tangible use case for USDC is a very attractive option.
If youāre curious but want to understand the pros and cons, please continue reading the rest of this thread for my honest assessment.
š Here Are The Cons:
1ļøā£ MoneyGram accessibility: in Peru you find MoneyGram locations anywhere, but in Mexico I was not able to find any MoneyGram locations as easily. I was told that I could do this at some OXXO locations but their systems didnāt work. Banco Azteca and Elektra were lifesavers in Mexico. So it will depend on the country youāre in.
2ļøā£ Credit Card exchange rate: if your destination country accepts credit cards widely, even in taxi cabs or corner snack shops, then you might be ok to just use a credit card. I love my Amex or Chase Sapphire cards - they give me exchange rates that are closer to the official ones. Obviously this wonāt work with remittances or money transfers though, just for in-country purchases.
š Here Are The Pros:
1ļøā£ Better exchange rates: exchange rates matter. One percentage or a one cent difference is important, especially with larger amounts. It means more hard-earned money in your pocket! I tested this in CDMX using various methods, take a look:
š - Scotiabank ATM + BOA debit card: 1 USD = 15.71 MXN
š - CDMX Airport Exchange: 1 USD = 16.70 MXN
š - USDC + Moneygram: 1 USD = 17.59 MXN
š - Official Rate: 1 USD = 17.92 MXN
2ļøā£ Smaller/Exact Amounts: with a lot of currency exchanges, they give you a better exchange rate if you transact a larger amount. In some countries, you have minimum to abide by and you canāt exchange just $5 USD. This method allows you to exchange small amounts, and even exact amounts. I can technically exchange $20.35 USD to pesos if I wanted.
Pedro's Disclaimer:
(Opinions are my own and not the views of my employer)
Source:
