The adoption of cryptocurrencies in Mexico can increase, through the use of APIs (Application Programming Interface, for its acronym in English), system integration services that facilitate the transmission of data between financial institutions and businesses.
In the country, the use of digital assets is reflected in the 11,000 ATMs of the Dash cryptocurrency, and the 14,000 convenience stores that offer transfer services for cryptocurrencies according to the LATAM 2021 blockchain report.
This report highlights that the main impact of the adoption of cryptocurrencies will be to facilitate international money exchanges, in addition to the fact that the financial sector will seek to integrate blockchain solutions to solve inefficiencies.
“APIs can provide tools so you can accept payments in Bitcoin and convert to other currencies, there is even an option where you can process debit or credit card payments and we deliver crypto to you,” said Gerardo Treviño, director of software provider Syncfy.
The API must offer joint solutions for Open Banking, Open Fiscal and Open Crypto, to be able to convert between currencies and operate the transactions of the different payment methods.
Currently there are different APIs that facilitate the exchange between cryptocurrencies such as Coinbase API, BitPay or Payments, the latter two enable payment options in cryptocurrencies for electronic businesses, in addition to other functions dedicated to online sales.
Bryan Benson, former Director of Operations for Latin America of the Binance platform, explained to this medium that the firm is committed to regulation in Mexico regarding cryptocurrencies, but still sees barriers such as the limitation of Bank of Mexico (Banxico) for regulated financial institutions to coexist with digital assets.
The Law to Regulate Financial Technology Institutions set a precedent for cryptocurrency regulation, however Banxico established that no regulated financial institution can offer these products to the general public and their technology can only be used internally, as long as with the consent of the regulator.
Although institutions that are outside the financial system have the possibility of offering digital currencies, as long as they operate within the provisions of the Federal Law for the Prevention and Identification of Operations with Resources of Illicit Origin and are identified as a vulnerable activity before the Service of Tax administration.
The former director of Binance said at the time that the regulations would limit crypto asset exchange platforms, since companies like Bitso, the largest in the segment in Mexico, created strategies that were difficult for other operators to follow.