Mexico's blockchain industry grew 90% in two years
According to data provided to Cointelegraph Espanol by law firm Legal Paradox, which specializes in blockchain and financial technologies, the Mexican blockchain industry has nearly doubled in size in just two years.
The law firm estimates that the fintech and blockchain sector in Mexico has grown by 90% since 2018, identifying the country as a "benchmark" for industry around the world.
Despite the global economic slowdown amid the coronavirus pandemic, Legal Paradox sees an increase in local use of blockchain technology, or DLT, as large traditional companies turn to blockchain-based solutions to reduce inefficiencies and be best positioned to survive the current business climate.
"The number of players from traditional sectors who see their future and survival in these technological solutions is huge," the company stated.
More than 640 fintech companies operate in Mexico
Legal Paradox recorded 640 entities currently operating in the financial technology sector in Mexico, of which 443 or 69.1% of companies are based in Mexico City.
Nuevo León is the second largest tech hub in the country with 61 companies, followed by Jalisco with 44, Querétaro with 14 and Mexico State with 11. As such, the five Mexican cities represent almost 90% of all fintech and blockchain companies.
Carlos Valderrama, Managing Director of Legal Paradox, estimates that the firm has worked with around 190 firms in the sector, or around a third of all active entities since its founding in 2017.
Legal Paradox reports that loans cover the largest segment of Mexican DLT and fintech, accounting for almost 17% of all enterprises.
Fintech tools and wealth management account for just over 14% and 12%, respectively, and payment companies almost 10%.
Agrotech and proptech are the least active segments of the industry, each accounting for less than 0.5%.