As the cryptocurrency market grows in Mexico, it’s a good moment to consider the key ways that our use of digital money is evolving. By studying some examples, we can see how cryptos are changing the way we think about money.
The Numbers to Date
According to Statista, the Mexican crypto market could reach over $985 million by the end of this year, with over 15 million users. These numbers reflect the growing acceptance of tokens, including Bitcoin (BTC) and Litecoin (LTC). Mexico is ranked number 14 in the 2024 Global Crypto Adoption Index Top 20, which is led by India and Nigeria.
BTC remains the most popular crypto in the country, with Mexican billionaire Ricardo Salinas Pliego recently posting on social media to confirm his confidence in the future value of this token. The founder of Grupo Salinas is among the richest people in Mexico and has increased his BTC holding to 70% of his overall investment portfolio from just 10% in 2020.
The academic paper titled Economic Development in Mexico and the Role of Blockchain was published by Fabian Zbinden and Galia Kondova in 2019, stating potential advantages such as greater financial security and a fairer distribution of wealth. Close to 50% of the country’s wealth is owned by 1% of the population, with the report suggesting that the blockchain could allow more Mexicans to access financial services and help Mexico’s development.
The Rise of Mexican Crypto Companies
With cryptocurrency playing an ever bigger role in the global economy, this has opened up possibilities for Mexican companies to enter this industry and make a big impact. Bitso is one of the leading crypto exchange platforms and currently has over eight million clients across Latin America who convert local currencies like the peso into any of the leading digital currencies.
Duly Coin is an example of a peer-to-peer token created in Mexico that offers fast transaction times with zero cost. Gaugecash and Trubit Pro (aka Mexo.io) are other projects coming from here that aim to make their mark in the fast-changing world of digital finances.
Crypto by Pixabay
Other Use Cases
Stablecoins such as Tether are also widely used in Mexico for remittances and international online payments. MMXN is backed by Moneta Digital reserves and is the first stablecoin pegged to the Mexican peso rather than the US dollar or some other globally accepted asset. The original use case of making peer-to-peer payments with cryptos remains popular, with options such as Linio and Elektra among the best known.
We can also find an increase in the use of cryptocurrencies for online betting. This guide on how to be a bookie confirms that payment processing is one of the most important areas and cryptocurrencies are listed alongside debit cards and e-wallets as the leading banking options. As each customer has their own preferences to consider, it makes sense to offer cryptos for those who want the fastest and most secure payments.
The growing importance of cryptocurrencies in Mexico is a trend that’s likely to continue as new use cases and business ideas emerge that capture our imagination and gain our trust.
The post The Present and Future of Cryptocurrency Usage in Mexico first appeared on The Yucatan Times.