The blockchain industry in Mexico grew 90% in two years

According to data provided to Cointelegraph Espanol by the law firm Legal Paradox, specializing in blockchain and financial technologies, the Mexican blockchain industry has almost doubled in size in just two years.

The law firm estimates that Mexico's fintech and blockchain sector has grown by 90% since 2018, identifying the country as a "benchmark" for industries 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 are turning to blockchain-based solutions to reduce inefficiencies and be in the best position to survive the current business climate.

"The number of players in traditional sectors who see their future and survive in these technological solutions is huge," the company said.

Over 640 fintech companies operate in Mexico
Legal Paradox has 640 entities currently operating in Mexico's financial technology sector, of which 443 or 69.1% of companies are based in Mexico City.

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

Carlos Valderrama, managing director of Legal Paradox, estimates that the company has worked with around 190 companies in this sector, or around a third of all active entities since it was founded in 2017.

Legal Paradox reports that loans cover the largest segment of Mexico's DLT and fintech, accounting for nearly 17% of all businesses.

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

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