31/05/19 07:56 UTC-4

Financial geography: Cryptocurrencies in Mexico

Cryptocurrencies in Mexico
Cryptocurrencies in Mexico

The fifth largest country in America, Mexico, is known for quite good economic indicators. Naturally, such an important financial industry as cryptocurrency could not bypass the United Mexican States (North America).

In this article, we will talk about how cryptocurrencies are developing in Mexico, how local government regulators treat digital assets, and whether Bitcoins can be mined and spent in this country. In addition, we will recall all the important stages of the development of the crypto-industry in Mexico.


Bitcoin transaction legacy issues

In September 2015, transaction restrictions in Mexico began to apply to the first cryptocurrency, Bitcoin. The Secretariat of Finance and Public Credit stated that cryptocurrencies belong to the financial industry and are subject to the same restrictions as certain valuable metals and securities.

According to Mexican restrictions, it is still impossible to use Bitcoin or other altcoins for:

  1. Loan repayment;
  2. Purchases of real estate worth more than 8024 minimum wages;
  3. Rent or purchase of vehicles worth more than 3010 minimum wages;
  4. Shopping for illegal goods or paying for illegal services;
  5. Payment of state taxes.


Mexican Cryptocurrency Exchange: Bitso

Interestingly, despite all the severity of state control, there are cryptocurrency exchanges in Mexico. And, one might say, they flourish. In 2016, when Bitcoin was approaching the peak of its development, the popular Mexican crypto-exchange Bitso could work safely and even undertake two rounds of investing.

In December 2016, there was the first "sowing campaign" round for more than $2 million; the second one followed in September ($2,5 million). It is important to note that moguls of the financial market participated in the fundraising. Among them, there were Variv Capital and Digital Currency Group from Barry Silbert, as well as venture capital organization Xochi Ventures, Blockchain Tech Limited, and FundersClub.


Cryptocurrency crowdfunding in Mexico

Crowdfunding is an online collaboration of people for project implementation (see Crowdfunding as a way of investing or presenting crypto projects). Interestingly, in Mexico, the crowdfunding is the most popular way to develop new crypto and blockchain projects. It all started in the beginning of 2018, when the Lower Chamber of the Mexican Congress (Chamber of Deputies) adopted a controversial bill to regulate the sector of financial technologies, cryptocurrency, and crowdfunding.

Since then, crypto-crowdfunding is considered to be an official industry; it even outperforms ICO in terms of popularity.

Interesting in the section: Financial geography. Cryptocurrencies in Poland


Debit account top-up and utility bills in Bitcoins

On November 7, 2016, Bitwala startup started working in Mexico. Since then, residents of the country have the opportunity to pay utility bills and put money in their debit accounts using cryptocurrency. Previously, the service worked with Bitcoin, but today more than 20 crypto assets are available to customers.

Bitwala automatically converts crypto into Mexican pesos according to the average current rate.


Blockchain will help to grow quality marijuana and corn

In early January 2018, Vicente Fox (the former president of Mexico) said "historical" words. Speaking at the Blockchain Economic Forum, he stated that the blockchain technology would be useful to farmers. In his opinion, the blockchain will help to track supplies and build trust between farmers, exporters (importers), and consumers. In his speech, the former president also claimed that the blockchain technology would be particularly important for growing corn and marijuana.


15% of Mexicans use cryptocurrency

15.8% of people who send money from Mexico on a regular basis choose cryptocurrency. According to Clovr research in 2018, 15.8% of the 707 Mexicans surveyed use Bitcoin for cross-border payments.

This is the status of cryptocurrencies in Mexico. In addition, it is important to note that there are more than three hundred Bitcoin-ATMs operating in the country, as well as about a hundred local online stores where you can pay using cryptocurrency. We have already written about what and how you can buy using cryptocurrency: clothes, car, apartment, and much more.

Editor: Pereyidenko Ihor

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