Mexico is the sixth country with the highest adoption of cryptocurrencies

In line with the rapid growth in the use of cryptocurrencies in Latin America, Mexico has positioned itself as the 6th country in the world with the highest adoption of these instruments that emerged 11 years ago with the birth of Bitcoin.

Towards a world of cryptocurrencies
Towards a world of cryptocurrencies

According to the Global Consumer Survey of the German firm Statista, which focuses on collecting data on economic and financial indicators, in Mexico, 12% of its population has acknowledged having used or possessing cryptocurrencies.

"The world region where most of the crypt coin users were located was Latin America. Brazil, Colombia, Argentina, Mexico, and Chile obtained double-digit scores in terms of the adoption of cryptocurrencies", reads the explanation of the study.

According to Statista's analysis, Turkey tops the list, with 20% of its population adopting it, followed by Brazil (18%), Colombia (18%), Argentina (16%), South Africa (16%), and Mexico, with 12%.

The survey showed that countries with more developed economies were at the bottom of the list, for example, Japan, where only 3 percent of its population acknowledged having used or possessing cryptocurrencies, Germany, with 4 percent, or the United States, with 4 percent.

Regulatory environment

According to El Economista, the enthusiasm for virtual assets comes at a time when regulation is not yet clear, despite the intention of the Financial Technology Institutions Regulation Act, or the Fintech Act, to cover these instruments.

When the Fintech Law was published in March 2018, the Bank of Mexico was obliged to issue secondary provisions to know what type of virtual assets it would recognize and how their legal operation would be in this respect; however, the central bank only indicated that it would guarantee operations for internal use by regulated financial institutions.

This move left the issue of supervision of those virtual asset organizations not recognized by any financial law to the Tax Administration Service (SAT), but only for the purposes of prevention of money laundering and financing of terrorism; at present, this authority supervises 15 platforms.

Method of payment

According to Bitso, the platform based in Mexico City and a leader in buying and selling cryptocurrencies, there are 92 establishments in Mexico where the use of crypto coins is already a fact. A person can buy products through Amazon, purchase flights through Expedia or books with Gandhi.

According to the survey conducted by UENI, 33% of the businessmen who claimed to know about cryptocurrencies, the sectors that most resonated in the question of their implementation are supermarkets, retail sector, restaurants, and the sale of clothing and accessories. 75% of the first ones assured that they would not implement them to receive payments, while the other three sectors were more receptive.

The retail sector indicated, in 60%, that they could use them as a payment method; more than half of the business owners of restaurant chains would also accept the crypto coins, while 51.7% of the clothing and accessories stores would receive them.

Mexico and the adoption of cryptocurrencies

Mexico is the third country in Latin America with the most transactions in cryptocurrencies, only behind Brazil and Colombia. 35% of Mexicans who already have some type of virtual asset use it to make payments or purchases online. 49.6% of businesses that know about cryptocurrencies in Mexico would accept them as payment methods.

Technology advances by leaps and bounds: what is new today will remain in the past tomorrow. The governments of countries around the world are looking for new ways to make financial markets more stable and reliable for people, and within the last few years, they have decided to rely on blockchain technology, because of its degree of reliability and transparency.

Thinking about cryptocurrencies as an exercise that can be adapted to everyday life is consistent and practically a dream come true. However, in Mexico, according to a survey conducted by the UENI firm, it revealed that 67% of small businesses do not even know what cryptocurrency is.

According to the study "Cryptometer MX18: the first study of crypto money in Mexico", conducted in 2018 by Psyma Latina, Wisum, Bitso, and Fiinlab:

47.4% of Mexicans do not buy crypto-currencies for fear of being victims of fraud, 39.6% for ignorance about the establishment of the price of digital currencies, 30.5% because they consider that there is no support, 29.9% because they fear they will lose value in the market and 28% have more confidence in traditional financial methods.

Mexico is one of the most advanced countries in Latin America in terms of crypto-currency. It is the third with more transactions behind Brazil and Colombia. According to the study, 35% of Mexicans who already have some type of virtual asset, use it to make payments or purchases online, 32% decided to save them waiting for some time to increase its value and 15% prefer to use their digital money to make payments in establishments.