In its fifth annual edition of the Blockchain Report Latam, Sherlock Communications revealed the factors that have been driving the adoption of cryptocurrencies in Mexico.
According to the report by the public relations and digital marketing agency, remittances are the main use case among Mexicans who own and use cryptocurrencies in the country.
Cryptocurrency adoption in Mexico has seen significant growth over the past year, as more people look for alternatives to send and receive payments from abroad. According to Sherlock Communications, cryptocurrencies and stablecoins have become an attractive option for Mexicans, which is driving the holding of this class of digital assets among the country's citizens and residents.
In the report, the company explored the main factors that have been driving this trend, as well as the challenges facing the region and future prospects.
2,5% of the Mexican population owns cryptocurrencies
According to the report published by the agency, 3,1 million Mexicans, representing around 2,5% of the population total of this country currently own cryptocurrencies and digital assets.
The exponential growth in cryptocurrency adoption places Mexico as the third country in Latin America in terms of adoption and use of digital assets. In the last year, Mexico climbed several places in the Chainalysis Global Cryptocurrency Adoption Index.
Sherlock Communications assured that the use of cryptocurrencies and digital assets in the region is not a passing fad and that more and more people are becoming familiar with and adopting this type of digital assets to access essential financial services.
In the case of Mexico, remittances have been the main driver of cryptocurrency use and adoption among Mexicans. In 2023, remittances registered a total value of $63.000 billion dollars in the country.
Remittances, inflation and innovation
In addition to remittances, the high inflation and monetary devaluation The current crisis in Latin America is further accelerating the adoption of cryptoassets, the agency said. Cryptocurrencies, such as Bitcoin and Ethereum, offer their holders a more stable and secure store of value and, potentially, an emerging and lucrative investment asset class.
Furthermore, the innovation that these digital assets offer is also an attractive and determining factor for adoption. The report highlights the accessibility that cryptocurrencies provide to alternative financial services to traditional banking, which is why they also play a key role in the financial inclusionThrough cryptocurrencies, Mexicans can make global payments and transactions without intermediaries. These digital assets provide financial inclusion to those who do not have or cannot access traditional banking accounts and services.
According to Sherlock Communications, these are the main factors that have been pushing many people in Mexico and Latin America to embrace cryptocurrencies and blockchain technology to ensure financial survival.
The Blockchain scene in Latin America
In addition to analyzing the reasons why the adoption of cryptocurrencies is increasing in the region, Sherlock Communications also focused on how the blockchain and Web3 industry is developing in Latin America. In this regard, it noted that, in the last year, blockchain technology has expanded beyond the financial sector. For example, Ecuador and Guatemala are taking advantage of this technology to ensure the transparency and confidence in their national elections, the report said.
“Over the past year, we have witnessed the considerable growth that the blockchain ecosystem has experienced in Latin America, driven by a confluence of factors such as the growth of global interest rates, the implementation of supportive regulations and populations eager for financial inclusion.”said Sherlock Communications.
According to the agency, Latin America is positioning itself as a key player in cryptocurrency innovation and emerging technologies, which is beginning to capitalize on the global boom in the crypto industry. Countries such as Brazil and El Salvador are leading by example the way towards establishing Cryptocurrency-friendly regulatory frameworksThe latter is crucial to speed up the official entry of institutional investors into the cryptocurrency market and to add a layer of legitimacy and stability to the crypto industry at large.
Finally, Sherlock Communications stressed the importance of educating people about the potential and innovation of cryptocurrencies, with the aim of overcoming several of the obstacles that prevent greater adoption of these digital assets and to continue driving the technological and financial revolution that is underway in the region.
