Blockchain: Revolutionizing Industrial Real Estate in Mexico
By Aarón Gallo, Julio Saenz, Natalia Martínez, Vicente Vivó | Real Estate Team at American Industries Group®
Blockchain technology is rapidly being adopted around the globe by public and private entities to track information in a secure, reliable, confidential, and transparent manner. Though it is most commonly known for its use in cryptocurrency systems such as Bitcoin, it can also be used to facilitate the transfer of information for transactions in any business network for both tangible assets, including real estate, vehicles, or land, as well as intangible assets, like intellectual property and patents.
Uses of blockchain in real estate
Blockchain-based technologies like smart contracts, digital record-keeping methods, and the tokenization of real estate all have the potential to revolutionize the way individuals and businesses invest in and trade real property. Tokenization, or digital securitization, of properties allows for a digital representation of real-world assets. This means that they can be securely transferred in compliance with all government and tax regulations, making real estate markets more liquid without increasing volatility, and consequently lowering barriers to entering the market and stimulating supply.
These technologies also have the potential to drastically reduce the cost of real estate transactions by eliminating all of the lawyers, insurance providers, and title companies currently required to act as middlemen to validate and ensure the security of real estate transactions. The ability to have instantly verify and track supporting documentation, identities and the transfer of funds will also save time, help to ensure compliance, and eliminate piles of paperwork.
Mexico, a leader in blockchain development in Latin America
An increasing number of businesses are beginning to adopt this emerging technology in various industries across the world, and Mexico is number one in Latin America in the development of blockchain and the third-leading company in the use of crypto-currencies. In general, smaller and more innovative companies are basing their business models on this technology. Though the government has yet to address the use of blockchain-based services, it already has strong laws in place that protect copyrights and author’s rights, including NFTs.
Opportunities in Mexico
Blockchain technologies and their ability to make transactions more secure also have the potential to solve some of the country’s most pressing social, political, and industrial problems related to corruption and a lack of transparency. This will inevitably raise the confidence of investors and international companies looking to start up business in Mexico by making it easier to navigate legal and financial differences between systems in different countries. Furthermore, its use, combined with the internet of things, can further help facilitate industrial procedures for companies, reducing the margin of error and streamlining logistics and manufacturing processes.
Blockchain technologies are here to stay, and as governments and businesses begin to adopt the policies and infrastructure to support them, their use will become more widespread, bringing about changes in the way we live and do business. At American Industries, we are always ready to adopt new ways of doing things that will help us serve our clients better and reduce risk. If you would like to learn more about our industrial real estate services or listings of available properties, reach out today.