According to the World Bank, Mexico ranked second in terms of money transfers – the figure exceeded $5 billion. Almost 20% growth in market activity attracted companies from the cryptocurrency industry to the country.
Over the past year alone, about half a dozen cryptocurrency giants, including Coinbase, Bitso, Africhange and Everest, have started providing digital asset transfer services in Mexico. President and Co-founder Structure.fi Bryan Hernandez noted:
"Cryptocurrency companies see huge opportunities here to optimize the processes of conventional money transfers using blockchain. Using cryptography, it is possible to make instant cross-border payments with or without a small commission."
So, in February, Coinbase launched a service for customers from the United States who want to send cryptocurrency transfers to Mexico. Recipients of crypto assets can withdraw money in pesos. Tether, which is also fighting for a share of the Mexican market, launched the MXNT stablecoin pegged to the peso in May. According to the USDT issuer, this will help customers use cryptocurrencies as a means of saving.
One of the most important factors stimulating the Mexican sector of money transfers in cryptocurrency is the huge number of citizens of the country who are abroad. Nearly 40 million Mexican immigrants live in the United States alone. Money transfers sent to Mexico from the United States accounted for about 94.9% of the total.
Another reason why more and more Mexicans are turning to cryptocurrency transfers is distrust of banks. More than 50% of Mexicans do not have bank accounts. This makes cryptocurrency money transfer solutions convenient for citizens of this demographic group, since all that is needed to receive funds is the address of a cryptocurrency wallet.
Recall that at the beginning of the year, Daniel Becker, President of the Association of Mexican Banks (ABM), met with Victoria Rodriguez Ceja, Governor of the Bank of Mexico, to discuss joint work on the introduction of the state digital currency.