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Mexico’s blockchain sector grows 90% in 2 years despite COVID-19

June 5, 2020

Mexico’s financial technology or fintech and blockchain industries have almost doubled in just two yearsAccording to data provided to Cointelegraph by legal paradox, a blockchain-based law firm.

The company estimates that the Mexican fintech and blockchain sector has grown 90% since 2018, and describes the country as a “benchmark” for the industry worldwide.

Despite the global economic slowdown in the midst of the corona virus pandemic, Legal Paradox signals increasing local adoption of distributed ledger technology (DLT) as traditional large companies use blockchain solutions to reduce inefficiencies and a better position to address the current business climate survive.

Mexico’s blockchain sector grows 90% in 2 years despite COVID-19Mexico’s blockchain sector grows 90% in 2 years despite COVID-19

“The number of players in traditional sectors who see their future and survival in these technological solutions is exponential,” the company said.

More than 640 fintech companies operate in Mexico

Legal paradox observed Mexico currently has more than 640 financial technology companieswith 443 or 69.1% of the companies based in Mexico City.

Nuevo León is the second largest fintech center in the country with 61 companies, followed by Jalisco with 44, Querétaro with 14 and the state of Mexico with 11. Thus five Mexican cities represent almost 90% of blockchain companies and fintech in the country.

Carlos Valderrama, Managing Director of Legal Paradox, estimates that since its inception in 2017, the company has worked with approximately 190 companies in the industry, or approximately a third of all active companies.

Credit and wealth management dominate the sector

Legal paradox reports that the loans comprise the largest segment of Mexican DLT and fintech, which account for almost 17% of all companies.

Fintech tools and wealth management account for just over 14% and 12%, respectively, while payment companies account for almost 10%.

Agrotech and Proptech are the least active segments in the industry, each accounting for less than 0.5% of the industry.