Mexico: Western Union loses value – Bitcoin booms

After Mexican President Enrique Peña Nieto cancelled the meeting with the new US President Donald Drump, the share price of the payment provider Western Union promptly fell by several percentage points – less nationally sensitive payment systems such as Bitcoin, on the other hand, met with growing popularity.

Following Trumps’ announcement to start building the US-Mexico border wall and finance it with a 20% tariff on Mexican imports, Peña Nieto cancelled the planned meeting of the two heads of state. The conflict between the two closely rooted trading partners triggered an economic shock wave that did not leave the well-known remittance service provider Western Union unscathed.

Bitcoin profit as Safe Haven for Weakening Peso

Following the cancellation of the Trump meeting, the already weak peso fell by more than 1 percent against the US dollar. Read more about it here: Investments in digital currencies like Bitcoin profit can help investors mitigate these negative effects.

Marco Montes Neri, co-founder of the cross-border payment service provider, says the technology is not yet “mature” for a mass-market safe haven, but at the same time stressed the importance of digital currencies as a non-state foundation:

“Reality shows that the acceptance is not yet so advanced that governments intervene to create clarity or the company has the possibility to invest large parts of its assets in digital currencies. This shows us how important it will be in the future to think about replacing traditional national economies with cluster economies. National economies are increasingly becoming a threat to businesses.”

Jose Rodriguez of Bitso, the Mexican digital currency exchange, sees Bitcoin as a haven for Mexicans to escape the depreciation of the Mexican peso: “If the announced measures actually take effect, many Mexicans will look for alternative currencies. The past has already shown us that Bitcoin, for example, is a popular place of refuge in times of economic instability and political problems. Bitcoin gives people back the freedom to move their money freely”.

Interest in digital currencies and Bitcoin profit on the rise in Mexico

In response to the economic Bitcoin profit problems Mexico is facing now and in the future, alternative currencies are becoming increasingly popular, according to Rodriguez: Is Bitcoin Profit a Scam? Read This Review Before You Sign Up!

“People see Bitcoin as an opportunity to preserve value. Over the past two years, the peso has lost 50% of its value against the US dollar. Any new Trumps announcement could reduce Mexican income and push the peso further into the basement.”

Since the US elections, interest in Bitcoin has increased. The trading platform Localbitcoins has already recorded a strong increase in trading volume on the Mexican market. Also the trading platform Bitso already profited from the Trump slogans:

“People inquire about Bitcoin in forums and communities. They want to know how they can process or invest in international payments via Bitcoin. Conventional transfer methods are heavily taxed or even completely discontinued.”