The most notable cryptocurrency today is no other than Bitcoin despite the unstableness of crypto currencies, it’s clear that cryptocurrency is here to stay, and it’s taking the entire world by storm.
Mexico has decided to join a small group of countries by regulating cryptocurrencies along with fintech companies.
A new bill has been passed by the Mexican, which means now companies may find it difficult to operate using Bitcoin and other digital currencies as they have been used to in the past. The same goes for the many fintech companies that are in operation.
You may ask yourself what is a fintech company?
Fintech stands for Financial Technology, it’s a new financial industry that may replace financial instruction as we know them today, and Fintech Companies are developing technologies to improve financial activities.
A lot of fintech companies operate on open source software as they prefer to have their services more accessible to the general public.
Companies, governments and banking institutions are now noticing the rise of Fintech and now realizing the need for adoption of greater security as without advanced cyber security, fintech companies are vulnerable to hackers from all over the world.
Mexico has the largest fintech market in all of North America.
So, where does it go from here?
Well, Bitcoin is now main stream and everyone is taking listening as there’s a lot of money to be made from it right now, currently, bitcoins are mainly traded on one of the many “cash” exchanges that exist around the world, even the largest of which has been subject to outages.
It is now possible to trade bitcoin futures, bitcoin derivatives which already exist (LedgerX being one which just launched in October), bitcoin futures are expected to eventually bring the liquidity and stability demanded by large institutional traders and small retail traders alike.
Some say it will become a direct threat to the Petro-Dollar, but for now, that’s just wishful thinking for some. The U.S. dollar is the primary world reserve currency, and won’t be losing its status any time soon.
For now, the UK & US are some of the few countries to regulate Fintech and cryptocurrencies. Others will eventually follow suit but there’s no telling how long before they react.