Mexico sees Blockchain Industry Expand at Record pace, Despite Covid-19
As per the data provided by Legal Paradox, a blockchain centered law firm, the size of blockchain and financial technology (fintech) industries have almost doubled in Mexico over the past two years.
Specifically, Legal Paradox assesses that Mexico’s blockchain and fintech industry has grown by 90% since 2018. Furthermore, the firm argues that Mexico is transforming into a “benchmark” for blockchain industry across the globe.
In spite of worldwide economic slowdown fueled by Covid-19 pandemic, according to Legal Paradox, there is a rise in domestic adoption of distributed ledger technology (DLT) as big traditional enterprises look at blockchain systems in an effort to minimize inadequacies and get ready to make it through the prevailing business environment.
The firm said “The number of players from traditional sectors who are seeing their future and survival in these technological solutions is exponential.”
Legal Paradox revealed that there are over 640 firms legally operating in Mexico’s financial technology industry. Of those, 443 or 69.1% are headquartered in in Mexico City. The country’s second largest financial technology centre is Nuevo Leon where 61 companies operate.
Jaliso comes next with 44, Querétaro with 14, and the State of Mexico with 11. Overall, five Mexican cities account for roughly 90% of the country’s blockchain and fintech firms.
Carlos Valderrama, managing director of Legal Paradox, claims that the company has joined hands with about 190 firms in blockchain sector, representing one-third of all active organizations since establishing in 2017.
Legal Paradox has pointed out that lending represents the biggest segment of Mexican fintech and DLT, accounting for roughly 17% of all businesses.
Fintech products and wealth administration makes up a little more than 14% and 12%, respectively, while remittance processing segment accounts for 10%. With just 0.5% share, within blockchain sector, Agrotech and proptech calls for urgent attention.