In 2023, Mexico’s cryptocurrency adoption was up by 18% year-on-year. More Mexicans are turning their backs on traditional investment and banking methods and looking to digital alternatives – the most tech-savvy of which are investing in cryptocurrency.
Not only did the country rank highly on the global crypto adoption index last year, but it’s also showing signs of doing the same in 2024. In this guide, we’ll take a look at the factors that are driving Mexico’s widespread crypto adoption.
Crypto casinos
Mexico has a big demand for online casinos. Coinciding with the country’s adoption of cryptocurrency is its online gaming and gambling market growth. Not only are Mexicans fond of real-money casinos, but they’ve also recently made the switch to crypto-based casinos.
These Bitcoin casinos work just like regular casinos, except players deposit crypto to play poker, roulette, blackjack, and other casino games. Both crypto and fiat currency-based poker sites can be found at offshorepokersites.com. The poker platforms listed on this site have been chosen by Filip Jovchevski due to their high bonuses and game variety.
To play crypto casinos, Mexican gamblers need cryptocurrency, which is one of the reasons for the country’s uptake of digital currencies.
Cheaper and faster payments
The main reason Mexico has widely adopted cryptocurrency is the same reason why the rest of the world has adopted it – it’s cheaper, faster, and more convenient than more traditional methods of banking.
Not only is payment processing basically instantaneous, but transaction fees are also lower in comparison to fiat currencies. Certain crypto transactions can even be performed without a transaction fee.
Remittances
Mexico is one of the biggest recipient countries of remittances in the world. A remittance refers to a payment sent home by someone living outside the country.
According to the Migration Data Protocol, Mexico is the second-highest recipient of USD remittances with a total of $67 billion. It sits behind India, which receives $125 billion in USD remittances every year.
Despite receiving significantly less than India, the high number of remittances sent home to Mexico is partially responsible for the country’s crypto adoption.
International payments often come with high transaction fees attached to them – this is not the case with cryptocurrency. As we’ve already explored, crypto is a fast, cost-effective, and hassle-free means of sending money. For this reason, crypto has become a popular means of sending remittances.
The limitations of Mexican banks
In recent years, several financial institutions in Mexico have been declared bankrupt. This includes the bank Banco Famsa (which required a bailout of $1 billion) and the financial company Ficrea. Such failures have put some people off using traditional financial institutions, leading to a rise in crypto investors.
In addition to this, many Mexican banks fail to provide inclusivity and accessibility. This is particularly apparent in rural and remote areas of the country that lack brick-and-mortar banks.
According to Fintech, less than 50% of the population has a bank account. In response to the lack of banking services, many Mexicans use cryptocurrency due to its accessibility and inclusivity. To invest in crypto, all that is generally needed is a smart device and an internet connection.
Mexican crypto infrastructure
Mexico has created a robust crypto infrastructure over the years, encouraging more people to invest in it. The country’s main exchange site, Bitso, is fair, regulated, and operates under strict risk management guidelines.
Plus, Mexico abides by Fintech regulations, which ensure crypto investments are safe and secure. At the same time, the crypto market in Mexico isn’t overly regulated to the point where it is restrictive. For example, there are no specific rules related to border restrictions.
Overall, Mexico’s solid crypto infrastructure has definitely influenced the widespread adoption of digital assets.
