Articles by Pablo Soria de Lachica

Spanish April 14, 2018

Pablo Soria de Lachica – on the Potential of Ethereum to Become Top Cryptocurrency

As the first cryptocurrency, Bitcoin heralded the most exciting period for technology since the creation of the internet. However, in the nine years since it exploded onto the global financial scene, the original crypto coin has, in a way, become a victim of its own success. Its meteoric rise sparked the emergence of over a thousand cryptocurrencies, triggered an investor frenzy, and raised a red flag for regulators. Among the multitude of digital coins vying for attention, only a handful stand out and appear destined for longevity. While none of them is currently close to Bitcoin in terms of market capitalization, industry participants and investors have already spotted gaps in the cryptocurrency’s armor. At the same time, another digital coin has kept gaining prominence, consistently proving its worth beyond purely monetary value. Ethereum (ETH), which arrived almost five years after Bitcoin, has become far more than the second-largest cryptocurrency by market capitalization. It is also…

Ethereum Support April 8, 2018

Pablo Soria de Lachica Comments on Growing Ethereum Support by Governments Worldwide

The appeal of blockchain technology extends beyond cryptocurrency. Currently, it is being explored by governments around the world for applications ranging from e-residency to Internet of Things devices. Increased efficiency and security are the major reasons national administrations are considering the integration of blockchain technology in their operations, says Pablo Soria de Lachica. The distributed ledger is a digital record of transactions that is spread across peer-to-peer networks. Attempting to create unrealistic records is very difficult, since each “block” in the chain is encrypted. Also, because the blockchain is not found in a single location, it is nearly impossible to alter every single record on the ledger. If applied, citizens’ identities and transactions with the state will need less checks to ensure accuracy and security. The US Food and Drug Administration recently issued a formal notice to obtain information on the blockchain’s application for exchanging patient-level medical data in the United States Critical Illness and Injury Trails…

Mexico Set-Up for Innovation February 15, 2018

Pablo Soria de Lachica Examines How Mexico is Set-Up for Innovation

With the 13th largest economy in the world (11th in terms of purchasing power and 10th most populous), Mexico sits abreast of the largest and most competitive international economic markets of our times. In 2017, the Mexican economy defied lackluster predictions for financial health by posting above average GDP growth. While much of this success was linked to trade, market analyst Pablo Soria de Lachica explains that structural reforms by the current administration have led to a freer private sector, open to dynamic business formations characterized by innovation and technology-driven enterprises. The Mexican government has steadily increased expenditures on research and experimental development,from 0.4% of GDP to 1% by 2018. This includes considerable investment in agencies such as CONACYT (Consejo Nacional de Ciencia y Tecnología-National Council for Science and Technology) who receive upwards of $2.2 billion annually, despite cutbacks to other sectors. A large portion of CONACYT funding is directed towards sustainable/renewable energy, health and green development. Pablo Soria de…

Inflation Prognosis for Mexico February 8, 2018

Pablo Soria de Lachica Discusses Inflation Prognosis for Mexico

After a year of reactionary fluctuations that began to steady in the later part of 2017, Mexico’s inflation rate appears poised for a stable decrease heading into 2018, barring any setbacks to the peso’s exchange rate. Pablo Soria de Lachica, internationally recognized broker, discusses the country’s long term inflation outlook, expressing cautious optimism moving forward after an eventful 12 month period that witnessed the nation’s currency hitting a 16-year high in September. Mexico’s inflation rate averaged 25.19 percent from 1974 until 2017, peaking at 179.73 percent in February of 1988, with an all-time low of 2.13 percent in December of 2015. Likewise, the beginning of 2017 was somewhat tumultuous for the peso, evidenced by a record low against the U.S. dollar during early January, when it dwindled to 22.0 MXN/USD. This was attributed to widespread pessimism towards the future of the North American Free Trade Agreement (NAFTA) following the 2016 United States…

Spanish February 1, 2018

Pablo Soria de Lachica Highlights Investment Opportunities Created by Mexican Market Liberalization

Following the conclusion of a years long process to liberalize the domestic fuel market, gasoline and diesel prices are no longer subject to government control anywhere in Mexico. As of November 30, the Finance Secretariat (SCHP) announced that fuel prices were fully deregulated, effective immediately, and that it would cease publishing daily maximums. Financial analyst Pablo Soria de Lachica discusses several new investment opportunities that are arising as large oil companies and other players welcome the news of eased government control. Soria de Lachica explains that the liberalization process began in 2013, when Mexico’s government launched a sweeping overhaul of the country’s energy sector that opened the oil, gas and electricity industries to foreign direct investment. Consequently, energy companies and those in related industries, both Mexican and international, recognized sizable opportunities in a rapidly evolving environment — both in the provision of infrastructure and the wholesale of fuel and supplies. Nearly half of the country’s pipelines…

Financial Technology January 26, 2018

Pablo Soria de Lachica Comments on Recent Moves to Regulate Mexico’s FinTech Sector

On Dec. 5, 2017 Mexico’s Senate approved a bill that would regulate its rapidly expanding financial technology (fintech) sector, including crowdfunding and cryptocurrency firms. “The new laws, which seek to promote stability and defend against money laundering, are also expected to pass through a final lower house vote,” explains financial analyst Pablo Soria de Lachica. If approved, Mexico will join a small, but growing, list of countries, including the United States and Britain, that have sought to regulate fintech businesses. The goal of the change, said Pablo Soria de Lachica, is to provide legal clarity for companies, including those working with bitcoin, that are creating new variations of traditional products and services. As currently written, the measure would specify that cryptocurrencies are not legal tender in Mexico, and all firms that deal with them would be officially regulated by the country’s central bank. If passed, the bill has the potential to reduce operational risk, enhance transparency and improve…

Property Market December 13, 2017

Pablo Soria de Lachica – Discusses Impact of Mexico Earthquakes on Local Property Market

Mexico was struck by three earthquakes in the month of September, with the 7.1 magnitude earthquake that struck Mexico City on September 19 causing widespread damage to municipal infrastructure, in addition to over two hundred deaths. The capital is home to 27% of the country’s population and generates 17% of its national gross domestic product. As the city implements reconstruction plans, Pablo Soria de Lachica points to improved building codes since the 1980s as a key factor in the reduced number of casualties relative to the capital’s infamous 1985 quake, in which 10,000 people lost their lives. According to the LA Times, city officials reported the earthquake affected 7,649 properties, of which 321 buildings are now considered uninhabitable. Shortly after the disaster, the city announced a 3 billion pesos reconstruction plan, making financial aid and loans available to residents commensurate with degrees of damage. The destruction of property caused demand for housing in neighborhoods surrounding affected areas to rise by 50%. In…

Mexican Businesses December 5, 2017

Pablo Soria de Lachica – Examines Prospects for Mexican Businesses in Earthquake-Affected Regions

In September of 2017, two separate earthquakes just weeks apart brought a great deal of destruction and casualties to Mexico City and the states of Morelos, Puebla, Oaxaca and Chiapas. The aftermath of these tragedies revealed a death toll that climbed well over 400, completely leveled over 60 buildings, and left thousands of other structures with significant damage. The effects will continue to linger in several ways for an extended amount of time, as these regions focus on recovery with not only their infrastructure and housing, but their respective business environments as well. Globally-renown businessman and foreign exchange expert Pablo Soria de Lachica discusses the financial prospects for the areas affected by these earthquakes, highlighting positive projections over the long term as they rebuild and move on. Shortly following the quakes throughout Mexico, the initial fallout was easy to see. Many businesses were total losses, while others sustained heavy damages that would prevent them from…

Employment November 29, 2017

Pablo Soria de Lachica – Discusses Potential Employment Boost in Earthquake-Hit Mexico Areas

Human tragedy is the immediate observable consequence when natural disasters of devastating magnitude strike, but after the initial shockwave, the affected society turns its attention to matters such as infrastructure, housing, and public services. The process of restoration begins and with it come new opportunities, especially in the areas of building construction and civil engineering. This is likely to be the case in Mexico, which was rocked by two massive earthquakes in September this year and faces the onerous task of rebuilding. But reconstruction campaigns could actually provide an economic boost to the affected areas and create opportunities for new employment, according to acclaimed foreign exchange broker Pablo Soria de Lachica. Despite the damage caused by the two temblors, the Mexican central bank said in October it did not expect the national economy to be significantly impacted in the long term. Although short-term growth could slow down, the country is likely to make up for the decline, the…

Investment Opportunities November 21, 2017

Pablo Soria de Lachica – on Investment Opportunities in Aftermath of Mexico Earthquakes

On Sept. 19, a 7.1 magnitude earthquake struck Mexico City, destroying billions of dollars worth of homes, businesses and infrastructure. The local and surrounding economies took an expected downturn following the disaster, but analysts are confident that reconstruction efforts will spur growth across the nation. Internationally acclaimed broker Pablo Soria de Lachica explains that investment opportunities will be ample throughout the recovery efforts. The week after the earthquake, Alfredo Coutino, Latin American director for Moody’s Analytics, reported a preliminary estimate that Mexico could lose between 0.1 and 0.3 percent off their gross domestic product (GDP) in the third and fourth quarters. For the full year the impact will be small as funds are expected to pour into the economy as the federal government releases disaster funds. As of June, the city’s disaster fund stood at 9.4 billion pesos (more than $500 million), making it slightly larger than the national holding. Mexico’s education ministry also has 1.8 million…