Coincove has recently launched to the general public its own wallet and exchange service targeted at Bitcoin users in Mexico, spurring the potential of the virtual currency to thrive in the local market.
Previously operating in private beta with about 250 users for the past months, this new Bitcoin exchange will simplify the peso-to-bitcoin conversion, and therefore, is expected to encourage or benefit various sectors.
Coincove Co-founder Tomas Alvarez said that the new service will provide Mexican Bitcoin users a more convenient method of acquiring bitcoins, which previously involved making transactions in Bitstamp or in the fallen Bitcoin exchange Mt. Gox.
Moreover, Alvarez sees the remittances from the US to Mexico as a potential market for Bitcoin, with more than $20 billion worth of remittances sent from the US to this Latin American country in 2013. Through this, locals can take advantage of the low-cost fees involved in sending remittances through the Bitcoin technology.
With Mexico’s policymakers not showing any signs of aggressive resistance to the virtual currency, Coincove can function in a relaxed state, not worrying about any kind of regulation looming on the horizon.
“I talked to some representatives from the Bank of Mexico a few weeks ago,” said Alvarez. “And they say that, for the moment, they’ll treat bitcoin as a digital asset.”
This opens up the possibilities for the online gaming industry, which is the most active sector in supporting and promoting Bitcoin, to flourish in the local iGaming scene too. Users are expected to engage more in Bitcoin casino games or in Bitcoin sports betting sites as a result from the easy and quick purchasing of bitcoins.
In fact, Coincove promises to provide financial transactions that are off-block chain, excusing them from requiring confirmations to complete, and therefore, be processed instantly—a feature Bitcoin users appreciate.
Whether or not this new service will further boost the popularity of Bitcoin among the locals, this company is determined to improve the ecosystem of the virtual currency in Mexico.
This, however, is challenged by the possible Bitcoin restrictions in Mexico.