Mexico registers most retail crypto transactions in Latin America

06 Oct 2020

Latin America represents 7% of the whole cryptocurrency global economy, according to the findings from a recent study. Out of this 7%, Mexico has registered almost 11% of all retail cryptocurrency payments since July last year.

El Economista features research carried out by Daniel Cartolin, a development representative from the blockchain analytics firm Chainalysis, highlighting that Mexico has received $24 million in retail crypto transactions over the past year, and sent $25 million to other continents, reports Cointelegraph.

Cartolin went on to add that remittances and trade have a huge presence in retail crypto transactions within Latin America.

The country’s strong links to both North America and Asia allow the flow of these retail transactions to be possible, according to the study. It also stated that the majority of these transactions are undertaken using Bitcoin, the world’s largest cryptocurrency by market capitalisation.

Furthermore, Cartolin added that cryptocurrency is often used for remittances throughout Mexico: "Remittances in the traditional world are substantial between the United States and Mexico, and we are beginning to see areas where cryptocurrency is beginning to be adopted for remittances, because there are fewer fees when it comes to exchanging cryptocurrencies and the person does not have to go to sites like Western Union or Moneygram to do the operation, it can be done from a phone."

Although Mexico is the trailblazer in terms of retail crypto transactions, it is Venezuela that leads the way in regard to crypto adoption in Latin America, as per research carried out by the blockchain company last month.

The report stated: “Our data shows that Venezuelans use cryptocurrency more when the country’s native fiat currency is losing value to inflation, suggesting that Venezuelans turn to cryptocurrency to preserve savings they may otherwise lose.”