Bitso, Mexico’s first Bitcoin exchange, has revealed to CCN a partnership with Pademobile that will allow all 3 million of the payment company’s customers to purchase bitcoins from their mobile phones. The Mexican Bitcoin exchange has claimed they want to “strengthen the purchase and use…
Pademobile is the company that was able to bring Bitcoin acceptance to every 7-11 in the country earlier in the year. Bitso has also announced that credit cards will now be accepted on their exchange platform, which makes them one of the first companies in the world to accept that particular deposit method.
With this combined effort from Bitso and Pademobile, the groundwork is being laid for Bitcoin adoption in Mexico. Although the Mexican peso does not have the same kinds of problems currently seen with the currencies of Argentina and Venezuela, this move makes it much easier for anyone interested in Bitcoin in Mexico to start using the currency instantly. Bitso’s CEO and co-founder Pablo Gonzalez has stated, “We have big plans together.”, so it’s possible that this won’t be the last move from these two innovative finance companies in Mexico.
The Mexican peso is not exactly the most troubled currency in the world, so it’s likely that Bitcoin adoption will happen at the international remittances level before anywhere else. Mexican citizens received over $20 billion in remittances in 2013, and the low cost of sending money between countries via Bitcoin could offer a reason for people in Mexico to start using bitcoin as a currency. The costs associated with sending money from the United States to Mexico are not as high as other international remittance markets, but the cheapest options for these kinds of money transfers do require bank accounts on both ends of the transaction.
It’s no secret that a large number of the people who want to send money from the United States to Mexico are in the country illegally, and it’s difficult to get access to a bank account when you don’t have any form of ID. For what it’s worth, Bitcoin also offers an extra layer of security and privacy for illegal immigrants who do not want to leave a paper trail back to Mexico.
An interesting takeaway from this story is the fact that Bitcoin remittances could be coming into the country at the same time that 7-11 accepts Bitcoin as a payment method. This may lead to adoption of bitcoin as a currency due to the fact that it could make sense to pay for groceries at 7-11 with bitcoins received from another country rather than paying a fee to convert those bitcoins to Mexican pesos. The moves that Pademobile is making right now should definitely give reason for people to be bullish on Bitcoin adoption in Mexico. Whether bitcoin will be adopted as a currency or just a payment system remains to be seen.
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Last modified: January 8, 2020 3:29 PM UTC