Belfrics introduces a blockchain-based wallet and remittance solution with the commencement of its Mexican operations
By Edlyn Cardoza
Life Clips, Inc. announced that Belfrics Mexico, an entity operated by Belfrics Group, has commenced Mexican operations to serve Mexico’s growing blockchain, cryptocurrency, and digital asset market. Belfrics Mexico will introduce its blockchain-based wallet and remittance solution to capitalise on the trend toward increasing remittance flows in Latin America.
Life Clips CEO Robert Grinberg said, “Mexico is a vital destination for our growth plan. There are not enough blockchain nodes in Mexico and Latin America, which leads to overcrowding of transactions.” Grinberg continued, “Belfrics’ commitment to regulatory approval in Mexico is the latest example of its commitment to compliance and our constructive approach to regulator engagement. We look forward to expanding our suite of available offerings and services, and continuing to work with stakeholders across sectors on advancing blockchain technology, cryptocurrency, and digital assets.”
Initially formed in 2019, development plans for Belfrics Mexico were sidelined due to the COVID pandemic. With business back to normal, Mexico is emerging as a hotbed for blockchain and cryptocurrency innovations. The Mexican market stands out as one of the significant crypto opportunities in Latin America because of its remittance business. According to Statista, a global provider of market and consumer data, Mexico’s largest FinTech market segment will be Digital Payments, with a total transaction value of US$71 billion in 2022. The Neobanking segment is expected to show revenue growth of 46.3% in 2023.
Belfrics CEO and Founder Praveen Kumar said, “The Mexican market will be the first region for Belfrics to deploy the blockchain-based wallet and remittance solution. In 2021, Mexico was the third-largest recipient of remittances worldwide, as the amount of money sent to the country from nationals living abroad increased. According to the Mexican central bank, total remittances reached $51.6 billion in 2021, which was a 27% increase from 2020. Research from The Center for Latin American Monetary Studies says this increase is a direct result of Mexican first-line workers in states like California, Texas and New York earning more income, while also receiving U.S. government-backed stimulus checks. Most importantly, remittance-specific crypto products mainly using Stablecoins have recently been introduced in the Latin American market. Stablecoins are ideal for remittances, since they are pegged to a fiat currency. This eliminates a large portion of price volatility while allowing consumers to benefit from the speed and lower fees of crypto.”
“While Belfrics Mexico’s licenses for wallet and exchange services are under process, the initial focus will be directed towards establishing our healthcare and educational app products to the Mexican ecosystem,” added Kumar. “It is estimated that the healthcare spend on blockchain is expected to record a CAGR of 44.5% over a period of 2019-2025, increasing from US$9.3 million in 2019 to US$122.3 million by 2025. We believe our blockchain offering will be an ideal solution for the Mexican market.”
Belfrics Mexico’s business will be driven by Manuel Esquivel and Carlos Arce, two senior professionals with a wealth of experience in the Mexican market. Esquivel holds a Law degree from NAU Mexico, and he has more than a decade of experience in FX and derivatives markets in Latin America. Arce also holds a Law degree from NAU Mexico, directorships in leading conglomerates in Mexico, and has been an integral part of developing the Financial System for Banco Agropecuario, Banrural and Banobras Bank.
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