Posted 8 months ago | by Ben Armstrong
Mexico Leads The Way in Retail Crypto Transactions for Latin America
The financial crisis in Latin American is setting the crypto market up to be the next financial system in the region. While crypto usage is the highest in Venezuela, Mexico has seen the most retail crypto transactions.
Research has indicated that 7% of the world economy is comprised of Latin American nations. Since July 2019, Mexico has captured approximately 11% of all payments for retail crypto transactions.
It is estimated that $24 million USD has been used in retail crypto transactions and $25 million USD have been transferred from Mexico to other regions over the last year, as pointed out in the study.
Daily Spanish news El Economista quoted data from Daniel Cartolin, a development representative from Chainalysis, a blockchain analytics firm.
Latin America Loves Crypto
When it comes to retail crypto payments, remittances and trade, as highlighted by the representative, are segments that are likely to see further growth.
The close relations between Mexico and North America as well as Asia facilitate these retail transactions according to the survey. He also mentioned Bitcoin (BTC) as the most common medium for transactions.
Bitcoin’s popularity has recently grown and spread to every corner of the world. A majority of Mexicans have been bringing BTC to daily life because it has been so beneficial since its inception.
Cartolin also noted a far wider use of crypto in numerous sectors,
"Remittances in the traditional world are substantial between the United States and Mexico, and we are beginning to see areas where cryptocurrency is beginning to be adopted for remittances, because there are fewer fees when it comes to exchanging cryptocurrencies and the person does not have to go to sites like Western Union or Moneygram to do the operation, it can be done from a phone."
Rapid Crypto Growth is the New Normal
The volume of crypto transactions in Latin American countries has skyrocketed, reaching an all-time high, particularly in Venezuela, Brazil, Argentina, Columbia and Mexico. Apart from retail crypto transactions, the technology business in Mexico has huge opportunities.
The country is a new home for fintech companies, especially when Trump decided to close many US visa programs.
While Mexico moves forward in retail crypto transactions, a research published by a blockchain company in September showed that Venezuela has the biggest crypto adoption in Latin America.
As a region – Latin America has more economic problems to deal with. As inept politicians deal with failing economies via money creation – crypto is likely to grow in popularity.
Articles on Bitboy may contain affiliate links that help us to remain profitable. It might come as a surprise, but all these great articles aren’t cheap to produce. If you don’t mind helping us out, please click on the links!