Mexico crypto players hope new president maintains status quo

Players in the cryptocurrency industry in Mexico are reportedly hoping the incoming president will maintain the country’s stance on the crypto landscape. Claudia Sheinbaum is about to be the first female president of Mexico, the third largest cryptocurrency adopter in Latin America.

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This comes as the cryptocurrency market is on an increase in Mexico, where over 3 million of its population now own or use cryptocurrency or some form of digital assets to transact or hedge against inflation. Mexico is ranked number 16^th in the world in terms of crypto ownership.

Key stakeholders hopeful on Mexico’s crypto stance

According to The Yucatan Times, key stakeholders in the cryptocurrency holding investments in crypto payment gateways are waiting to see “how their investments fare pending the transition.” Other players include crypto exchanges and live Bitcoin casinos that allow players to wager online using digital currencies.

According to the report, these are all waiting hoping the new leadership led by Sheinbaum will keep things “largely unchanged.”

The Yucatan Times report further indicates that about 40% of firms in Mexico want to explore blockchain technologies and incorporate cryptocurrency into their offerings.

Because of this, stakeholders like Bitso, the country’s largest crypto exchange are hoping “fears of constitutional reforms in the industry are just rumors.”

However, the fact Sheinbaum and her predecessor and current president Andres Manuel Lopez Obrador are from the same party is enough to keep stakeholders hopeful she will maintain the current stance.

Interest keeps growing in Mexico

The 2023 Chainalysis Global Crypto Adoption Index pegs Mexico at number 16 in the world for crypto ownership. The Latin American country is reportedly experiencing a continued interest in cryptocurrency and digital assets market exchanges, driven by growth in remittances.

Last year, Mexico recorded $63 billion in remittances, representing a 7.6% increase on the prior-year level, according to Mexico’s central bank.

Players like Coinbase want to join the Mexico market offering charges that are 30% cheaper than other traditional cross-border payments.

Also read: Mexico’s peso continues to outperform US’s dollar

The interest is not only in Mexico but across the region. Commenting on the development, Sherlock Communications advisor researcher and blockchain advisor Luiz Eduardo Abreu Hadad said:

“It seems like Latin America is ready to ride the crypto wave.”

Brazil is the biggest adopter of digital assets in Latin America but ranked 9th on the global scale. Adoption is high in Brazil because banks accept cryptocurrencies. Adoption is also driven by the approval of exchange-traded funds (ETFs) for digital assets.

On a global scale, Argentina is the 15th but second biggest in Latin America with an estimated five million citizens owning some form of digital assets.

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Cryptopolitan reporting by Enacy Mapakame