Skip to content

The USMCA is the first multinational fintech contract in North America with blockchain as the protagonist

May 29, 2020

The United States, Mexico, and Canada Agreement (USMCA) will replace the current NAFTA agreement on trade in North America. The trade agreement was negotiated by the governments of the United States, Mexico, and Canada, which will replace NAFTA after 26 years.

Now the USMCA marks the beginning of a new groundbreaking chapter in North American trade by supporting more balanced and reciprocal trade.This leads to freer markets, fairer trade and robust economic growth in North America.

This agreement is considered the first multinational fintech contract in North America, and blockchain technology is in place.

The USMCA is the first multinational fintech contract in North America with blockchain as the protagonistThe USMCA is the first multinational fintech contract in North America with blockchain as the protagonist

The USMCA has aligned its member countries with blockchain efforts for interoperability by creating uniform standards for the management and exchange of customer data, preventing government discrimination against foreign financial technology companies, and facilitating the provision of services for financial technology companies in other USMCA countries.

The agreement guarantees financial institutions access to the payment and clearing systems of all other member countries. This means something positive for the crypto exchange Work on conquering the liquidity market for banks in member countries and regional transfer payment networks.

USMCA considers digital trade to be relevant

The new agreement will offer important opportunities for trade relations between these three countries. One of the unpublished chapters relates to digital commerce, which enables commercial exchange between the three economies of digital products with specific policies, provides security and security for electronic transactions, and promotes international competition.

Modernized approaches at the USMCA

The agreement was also found to include significant improvements and modernized approaches to rules of origin, access to the agricultural market, intellectual property, digital commerce, financial services, labor and many other sectors.

These improvements will create more jobs, better occupational health and safety, and widen market access, creating new opportunities for workers, farmers and ranchers.

The goal in question is to strengthen North America’s competitiveness, to move towards an inclusive and responsible regional trade and to take advantage of the opportunities of the 21st century economy and promote the security of trade and investment.

By operating the USMCA, fintech companies now have better access to regulatory environments. and guidelines adopted by one of the three participating countries of the USMCA.


Global cross-border payments are tightly regulated, and expensive DLT technology has reduced some of the costs and improved traceability.

In this sense,Fintech is developing rapidly and innovating with new platforms for the provision of online financial services. Global financial technology companies are beginning to partner with local cellular operators, money transfer operators and banks across the borders of the United States, Mexico, and Canada.

The variety of fintech products is a known and unbelievable capacity: The technology expenditures for the provision of new services have become disruptive and have no clearly defined limits.

FinTech companies penetrated into highly innovative areas such as open data banking, peer-to-peer loans, mobile transfers, digital wallets, CrowdfundingBuild applications under distributed accounting technologies that do not respect jurisdiction and conquer all types of users worldwide.

In this way, blockchain technology penetrates digital commerce with the same force as the Internet. Disruptors now have access to areas that were generally reserved for highly regulated industries. Fintech innovations and cross-border digital finance activities have created a new international regulatory landscape for future contract negotiations.

USMCA impact on FinTech

In this context, the USMCA changes the FinTech framework (among other things) in the following way: It establishes principles that protect market access and ensure equal treatment. Provides Changes to Financial Services Regulatory System (Chapter 17, USMCA). In addition, the company has new dispute resolution systems to protect corporate investments and to enforce market access for FinTech products.

USMCA also prevents parties from FinTech companies from disclosing their software source codes to protect their protected data. By strengthening intellectual property rights (Chapter 20), the USMCA promotes limited environments in North America. Unlike the EU, the USMCA does not form a digital single market, but recognizes a number of cross-border advantages in the single market.

Both the USMCA provisions for digital commerce (Chapter 19) and financial services (Chapter 17) establish a complex and strict regime for cross-border data protection regulations (data transfer) that protect consumers, which enable every USMCA country to protect itself their national sovereignty.

Basically, the USMCA aims to strengthen economic relations between the United States, Mexico and Canada.. At the same time, it harmonizes the legal and commercial framework between the three countries to promote investment, trade, market access, competition, economic growth, small and medium-sized enterprises (SMEs) and innovation.

The USMCA also urges the parties to take measures to harmonize the treatment of innovative financial service providers, such as regulatory litter boxes.

USMCA payment services

Access to payment systems created by FinTech companies is not protected by the USMCA. These private payment systems depend on access to important assets (such as personal data and mobile information) that depend on other regulations such as communication.

As public payment services begin to operate with digital currencies, USMCA article 17.15 becomes more relevant by allowing related FinTech companies to access these clearing systems at the regional level.

For example, the document details that Innisfil in Ontario, Canada, allows property taxes to be paid with Bitcoin (while the city of Toronto rejected this application in 2018). The U.S. state of Ohio accepts cryptocurrencies for tax purposes, and Arizona, Illinois and Georgia are already discussing this option.

For his part In Mexico, some like FinTech companies Servicrypto They accept digital currencies to pay taxes in the country. In the area of ​​virtual currencies, the potential of FinTech can change the financial systems of the USMCA countries.

When central banks start issuing digital currencies, this affects their currency regulations by integrating their legal tender or money market into traditional clearing and payment systems.. Other USMCA rules and principles, such as data mobility and location of computing facilities, also protect payment services.

Cyber ​​security is often used as a simulated obstacle to protecting traditional industries and must be weighed against legitimate political goals. National cyber security threats must be built quickly and governments must work together to mitigate malicious interference or the impact of malicious code on electronic networks.

Although the future of the cryptocurrency appears to be characterized by regulatory uncertainties, the USMCA and its member countries’ policies toward financial technology make it clear that financial innovators have several regulatory options to choose from. when thinking about developing new services or entering new regions.