Community-financed projects and cooperatives in Mexico

• Cooperatives and community-financed projects are particularly widespread in rural and indigenous regions in Mexico. One example is the cooperative association in Puebla, which operates its own, jointly organized telephone and internet provider, "Wiki Katat". The aim is to create an economy of solidarity that is not based on profit, but on community organization and self-administration. Users are referred to as "brothers" and "sisters", not customers. The project was financed by jointly raised seed capital and is managed independently^1.

• International cooperation also promotes community-financed projects: The Mexico-Germany Joint Fund supports government, civil society and private sector projects in areas such as human rights, social inclusion and democratic governance. These projects are financed on a parity basis and supported by experts^2.

• Various social projects, for example in reconstruction after natural disasters or in village development, are jointly supported and implemented through donations and membership fees, as the example of "El Retiro" in Chiapas shows^3.

Digital wallets and alternative payment systems

• Digital wallets have experienced a strong upswing in Mexico in recent years. The number of transactions with digital wallets increased by 400 % between 2019 and 2022. Digital wallets are used by millions of Mexicans, especially for everyday payments, online shopping and on public transport. The advantages are lower transaction costs and high security standards, such as biometric authentication. The use of digital wallets is being further accelerated by the increasing spread of QR code payments and mobile devices^4.

• Important providers include MercadoPago, OXXO Pay, BBVA Wallet and various fintech companies that offer solutions for retail, e-commerce and services. Small and medium-sized enterprises are also increasingly using digital wallets for their payment processing^5.

Alternative currency systems and cryptocurrencies

• Alternative currency systems in the traditional sense (e.g. regional currencies or complementary currencies) have only been found sporadically in Mexico to date and are mostly limited to local initiatives. However, interest in cryptocurrencies is growing significantly: according to recent studies, around one in four Mexicans value cryptocurrencies as an alternative to traditional banking. Acceptance is particularly evident among young, urban population groups and in the area of digital services^6.

• The Mexican central bank is also working on regulations for digital currencies to promote innovation and security, while at the same time preserving the peso as the national currency.

Overview: Forms of community-financed and alternative models

Conclusion

Mexico already has a large number of community-financed projects, a vibrant cooperative movement and a dynamically growing landscape of digital payment systems. While traditional alternative currency systems are still a marginal phenomenon, cryptocurrencies and digital wallets are becoming increasingly important - both in everyday life and as a field of innovation for new business models.

Supplementary assessment from a Gradido perspective

A fascinating transformation is taking place: from traditional, community-based cooperatives and digital wallets to alternative and decentralized currency ideas, experimentation and design are already taking place in many areas.

Community, innovation, transition - everything is already in flux

Mexico proves it: Where people take responsibility together, dare to try new things and create regional solutions, the real humus for a new form of prosperity is created. Cooperatives such as Wiki Katat, community-financed social projects and regional initiatives already embody the gradido principles of decentralized, solidarity-based self-empowerment.

• Cooperatives and community economies:
  Here, cooperation - not profit - is the driving force. Solidarity, personal responsibility and the combination of tradition with new technologies show that sustainable, participatory business is possible. This is exactly where Gradido comes in: The appreciation of every contribution, democratic participation and a genuine sense of unity strengthen communities from within.

• Digital wallets and payment innovations:
  The widespread use of digital wallets facilitates the technological transition to new payment systems geared towards the common good. Gradido - with decentralized, transparent and easily accessible digital solutions - could build on this trend and enable participation even for the previously excluded.

• Alternative currencies and experimental spaces:
  It is exciting to see how open fields of experimentation are emerging: from local initiatives to growing interest in cryptocurrencies. Here, Gradido can grow as a genuine community project alongside existing systems: participatory, open, linked to the specific needs and values on the ground.