Bitcoin, the new decentralized digital currency making waves throughout finance, has been a hit even in Mexico.
Bitcoin has been adopted by Mexican citizens as a way of improving their life and conditions in one of the fastest growing economies on the planet. Unlike in other Latin American countries, like Argentina, where Bitcoin has been adopted mostly amid collapse of the Argentine Peso, Mexicans have been able to adopt Bitcoin under conditions of relative stability and even growth. The strength of Bitcoin’s growth in Mexico is made clear by recent developments in the country. For one, The Bitcoin Foundation added its latest affiliate chapter in the country. This moment was validating for the growing Bitcoin ecosystem in Mexico, and will ensure greater awareness of Bitcoin and its benefits among consumers, media outlets and regulators.
“We want to start working with the government and financial institutions to get more knowledge in Mexico and stop the fear surrounding bitcoin. That starts by getting involved so people start getting real information,” Lucia Cangas, marketing and communications director for the Bitcoin Foundation Mexico chapter, said. The growth of Bitcoin in Mexico has been quick. As Pablo Gonzalez, CEO and director general at Mexico-based bitcoin exchange Bitso, described in 2014: “The Mexican bitcoin community was extremely small and quiet a year ago, especially when you compare it with the likes of Canada and Argentina. Mexico was behind in bitcoin adoption.” Tomas Alvarez, CEO of Mexico-based bitcoin remittance startup Coincove, illustrates the local ecosystem of today: “Six months ago, there was almost nothing happening in the bitcoin scene, now there are regular meetups taking place in the main cities, bitcoin services popping up on a regular basis and, most importantly, bitcoin is being mentioned in schools and offices.”
The Bitcoin Foundation, however, was not the first Bitcoin related business to make a splash in the country. Two Genesis1 ATMs began operating at the Bit Center in Tijuana, Baja California, Mexico in 2014. As the company stated at the time of the launch:
“The Genesis1 ATMs differ from other Bitcoin ATM models in that the machine supports litecoin and dogecoin as well. Bitcoin42 acquired and deployed two machines, one accommodating Mexican pesos and the other US dollars.”
We are working with non-profits deeper south as well. There are coffee farmers for example who get harassed if they strike fair trade deals. So here too we are communicating so they can find safer, More private ways for them to make business, without mafias who are sitting at the bank teller selling customers infos.
According to a recent study by Pew Research Center, “The United States is the most important source of money sent home by migrants to the 17 Latin American nations as a group (including México) that are the focus of this report. U.S. remittances accounted for three-quarters of the total in 2012— US $41 billion out of US $52.9 billion.” This represents a great untapped market for Bitcoin, as many Bitcoiners consider remittances to be a major problem Bitcoin can solve by offering cheaper and faster value transfers. In 2013, migrants’ remittances into Mexico was a conjectured US $22 billion.
[Editor’s Note: MexResorts is interested in hearing from customers if we should accept Bitcoin. Please let us know on our Facebook.]