As the Crypto Winter Sharpens, Fintech Companies See Potential in Mexico

Following the fall of the FTX exchange platform, the main cryptocurrencies experienced a drop in their prices, which generated uncertainty about the future of the crypto world’s platforms and worsened the sector’s crisis, known as “crypto winter.” However, the Institution of Electronic Payment Funds (IFPE) Mercado Pago, detects a growing appetite in Mexico for digital assets.

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In the midst of the cryptocurrency crisis, Mercado Pago makes inroads into digital assets on demand

IFPE data reveal that in the country more than 12 million people have already invested in cryptocurrencies or have made transactions through them. Due to the size of the market, they foresee an increase in demand for investing in these assets.

“We detected through our platform that there is a growing demand for this type of asset, however, users are concerned about the complexity and security when using a platform. In addition, there is a need for education, a component that we identified as essential for those seeking these assets,” said Jorge Cabrera, director of payments at Mercado Pago.

During the presentation of the investment service in cryptocurrencies through fintech, Cabrera explained that the insolvency situation of FTX will be decisive for the platforms that offer services related to digital assets to effectively communicate security to users.

In that sense, Pedro Rivas, executive director of the firm in Mexico, pointed out that another fundamental aspect to enter the world of digital assets was to collaborate with regulated entities.

To date 160,000 users use the cryptocurrency investment function through the platform

“This world will take relevance regardless of the cycle we live in today, cryptocurrencies in five years will show a different picture from what it is today, in 10 or 20 years they will be part of everyday life,” he explained.

Regarding transactions, the alliance that IFPE maintains with the Paxos platform only allows them to invest in the mentioned assets. Regarding payments and transfers, Rivas said that they will seek to integrate these functions in the long term.

It was indicated that to date 160,000 users use the cryptocurrency investment function through the platform, and the average purchase is 166 pesos for Bitcoin and Ethereum, currencies currently offered by the platform.

If it were to offer the additional services mentioned during the presentation, Mercado Pago could compete with the cryptocurrency exchange platform Bitso; however, Cabrera pointed out that this is not part of its main plans in the short term.

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(Featured image by mike_ramirez_mx via Pixabay)

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First published in EL ECONOMISTA, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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