Mexico’s blockchain and financial technology (fintech) industries have nearly doubled in size over just two years amidst the COVID-19 pandemic.
It has been reported by blockchain-focused law firm Legal Paradox that the firm estimates that Mexico’s fintech and blockchain sector has grown by 90% since 2018 by describing the country as establishing a “benchmark” for the industry worldwide.
However, instead of the global lockdown amidst the COVID-19 pandemic, Legal Paradox notes an increase in local adoption of distributed ledger technology (DLT), as large traditional firms turn to blockchain solutions in a bid to reduce inefficiencies and best position them to survive the current business climate.
The firm stated:
“The number of players from traditional sectors who are seeing their future and survival in these technological solutions is exponential.”
It has been analyzed that Legal Paradox notes more than 640 entities currently operating in Mexico’s financial technology sector, with 443 or 69.1% of firms based in Mexico City.
As per the report, Nuevo León is the country’s second-largest fintech hub with 61 companies, followed by Jalisco with 44, Querétaro with 14, and the State of Mexico with 11. As such, five Mexican cities represent nearly 90% of the country’s blockchain and fintech firms.
Carlos Valderrama, the Managing Director of Legal Paradox, highlighted that the firm has worked with roughly 190 companies in the sector or around one-third of all active entities since launching in 2017.
Likewise, Legal Paradox reported that the lending comprises the largest segment of Mexican DLT and fintech by representing nearly 17% of all businesses.
Thus, fintech tools and wealth management comprise a little over 14% and 12%, while payments firm sits at nearly 10%.