“The Mexican Cryptocurrency Market value (revenue) was US$ 739 Million in 2023 and is likely to grow at a decent CAGR of 7.2% in the long run to reach US$ 1,409 Million in 2029”. The number of Mexican crypto users was estimated at 8.1 Million in 2023, it is expected to grow significantly in the future, driven by increasing adoption of cryptocurrency for trade which will be favored by efforts by platforms for a user-friendly investment.
Market Dynamics
Introduction
The Mexican Cryptocurrency Market is currently experiencing significant growth and regulatory developments. Increasing remittances, alternative means of financial inclusion, and the development of a regulatory environment for cryptocurrencies boost growth. Currently, cryptocurrency in Mexico exists in a legal grey area—it is not considered illegal, but it is not officially recognized as legal tender either. Around 8% of the total population is expected to adopt crypto in 2024, with most trading and balances centered around Bitcoin. This adoption reflects a growing trend towards digital assets as a significant part of financial transactions. Mexico is also the only country in LATAM where the XRP/MXN book is the third preferred one, primarily due to the international transfers and remittances powered by crypto in the US-Mexico corridor.
The number of cryptocurrency users in Mexico is set to grow rapidly, driven by Growth in educational initiatives and awareness campaigns to promote understanding and trust in cryptocurrencies among the general population and businesses. In terms of revenue major platforms in Mexico such as Bitso and Binance are expected to increase their revenue due to continuous improvements in platform technology, security, and user experience enhancing user satisfaction and retention, contributing to their revenue growth.
Key Drivers:
- Remittances in Mexico: The world's second-largest recipient after India. Despite economic challenges such as high inflation and interest rates, remittances to Mexico continue to grow, demonstrating resilience in the face of economic fluctuations. Most of these remittances come from the USA.
- Increasing adoption of cryptocurrency among the population: The growing understanding and adoption of blockchain technology’s benefits, such as transparency, immutability, and decentralization, have driven interest in cryptocurrencies.
- Growing number of Fintech companies: The user base for cryptocurrency services provided by Fintech companies is expanding rapidly, contributing to the overall growth of the market. As more people become familiar with digital assets, the demand for cryptocurrencies is expected to increase.
Market Challenges
Lack of regulations, inadequate infrastructure, and sudden policy changes create challenges for cryptocurrency adoption and investment. Cryptocurrencies are highly volatile, with rapid and unpredictable price fluctuations. The Mexican Cryptocurrency Market faces significant challenges due to high volatility. Frequent price swings can erode investor confidence and complicate regulatory efforts, hindering cryptocurrencies' broader adoption and integration into traditional financial systems.
Recent Partnership in Mexico:
- In 2023, Trubit announced its strategic partnership with SPEI to facilitate the buying and selling of cryptocurrencies in Mexico.
- Cryptocurrency platform Bitso has partnered with Africhange, an African-Canadian remittance platform, to facilitate cross-border transactions with crypto from Canada to Mexico.
Mexico Vs Latin America
In 2023, approximately 8 million Mexicans were actively investing in cryptocurrencies, and 50 million in Latin America. Latin America prefers centralized exchanges, especially in Brazil and Argentina. Mexico is the only one with approximately 50% share of both centralized and decentralized exchanges. The Mexican market is primarily driven by a substantial remittance sector and advancements in blockchain technology. In contrast, the broader Latin American market is influenced by high inflation, economic instability, and limited access to traditional banking services.
Segments' Analysis
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Segmentations
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List of Sub-Segments
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Segments with High Growth Opportunity
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Type Analysis
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Bitcoin, Ethereum, Ripple (XRP), Litecoin, Dashcoin, and Others
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Bitcoin maintains its position as the preferred choice of Mexicans.
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By Type
“Bitcoin is expected to remain dominant, whereas Ripple will be the fastest-growing coin of the market during the forecast period.”
- In Mexico, Bitcoin adoption is rising due to its appeal as an inflation hedge, utility in facilitating remittances, and supported by advancements in blockchain technology.
- The recovery in Bitcoin trade volume is driven by rising demand and expectations of a rate cut by the Federal Reserve in 2024. It is anticipated that the value of Bitcoin will rise if demand stays constant or rises.
- Stablecoins can align more closely with regulatory frameworks, making them attractive for institutional use and broader acceptance.
- In 2023, Mexico's central bank collaborated with Ripple to use XRP for cross-border payments, aligning with the broader trend of rising cryptocurrency adoption in the country.
Key Players
The market is highly concentrated with the presence of very less players across the region. The following are the key players in the Mexican cryptocurrency market.
Here is the list of the Top Players (Based on Dominance)
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Report Features
This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
- Latin American and Mexican Cryptocurrency Market: Covid Impact
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
The Mexican Cryptocurrency Market is segmented into the following categories:
Mexican Cryptocurrency Market, by Type
- Bitcoin (Country Analysis: Mexico)
- Ethereum (Country Analysis: Mexico)
- Ripple (XRP) (Country Analysis: Mexico)
- Litecoin (Country Analysis: Mexico)
- Dashcoin (Country Analysis: Mexico)
- Others (Country Analysis: Mexico)
Research Methodology
- This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s Mexican Cryptocurrency Market realities and future market possibilities for the forecast period.
- The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
- The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
- This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
- More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
- We conducted more than 10 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
Report Customization Option
With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:
Company Profiling
- Detailed profiling of additional market players (up to three players)
- SWOT analysis of key players (up to three players)
Competitive Benchmarking
- Benchmarking of key players on the following parameters: Service portfolio and strategic alliances
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