As the global financial markets continue to evolve and be revolutionized by blockchain technology, Mexico has seen its own fair share of changes based on these emerging trends. Between home purchases and everyday retail transactions, Bitcoin and other cryptocurrencies are becoming a widely accepted form of payment throughout the country and are providing users with a decentralized and rapid way to send payments. Below, we take a look at some of the current trends and outlooks on cryptocurrency use in Mexico.
Buying a Home
In Mexico, there are now numerous real estate developers who are accepting Bitcoin as a method of payment for properties, with a number of these transactions occurring in Tulum over the past year. Developers have noted high levels of interest in the Riviera Maya area for home purchases using cryptocurrencies, and accepting this type of payment can help potential buyers both domestically and internationally to successfully and quickly buy a home.
Using cryptocurrency as an acceptable payment method, buyers can exchange Bitcoin directly for the property via a wallet exchange, and are not required to convert the crypto to fiat currency or deal with the Mexican banking system to complete the purchase. This added convenience is very appealing for crypto investors who will want to avoid the fees and hassle of this additional step, and can easily use their crypto to purchase the property from anywhere in the world.
The security and ease that cryptocurrencies provide for users is a major benefit to the Mexicans who are increasingly using Bitcoin and other cryptos for everyday uses and transactions, especially online. As more businesses begin accepting crypto as a form of payment, the use will skyrocket throughout the country, which has already seen strong adoption over recent years with the current adoption rate at 15.2%, just below the worldwide average of 15.5%.
Another current use among Mexicans is to hold Bitcoin and other cryptocurrencies as a long-term investment, expecting sizable returns over the long-run, similar to investing in the stock market. Seeing cryptocurrencies as a lucrative investment and a good alternative to keeping cash balances in a bank account, owning and holding Bitcoin is becoming a popular option among people in Mexico.
OUTLOOK FOR CRYPTOCURRENCIES IN MEXICO
With a deep mistrust in the banks and a large percentage of the population that doesn’t use the traditional banking system at all, there is great potential within the crypto markets in Mexico. Given Mexico’s history of issues with tax evasion and money laundering, the banking system has seen tighter and stricter regulations recently, which is something that many citizens are tired of dealing with. While making a simple transaction or transfer is becoming increasingly difficult, the allure and benefits provided by cryptocurrencies make Bitcoin and others attracted to the country’s residents.
Favored by many for its sovereignty from any individual nation and its decentralized nature, there is no doubt that people in Mexico will continue to find new uses for Bitcoin and other cryptocurrencies in the coming months and years. As many within the nation continue to search for alternative methods for holding assets outside of the banking system, cryptocurrencies will no doubt grow in popularity amongst citizens.
By The Agency Los Cabos, in collaboration with Bailey Schramm, a writer from Happy Writers, Co.