Cryptocurrencies banned in the Mexican financial system

The Central Bank of Mexico, the Treasury Department and the Banking Authority have jointly issued a warning about cryptocurrencies. Finance Minister Arturo Herrera emphasized that the use of cryptocurrencies is prohibited in the Mexican financial system.

Cryptocurrencies banned in the Mexican financial system

The Central Bank of Mexico, the Treasury Secretary and the National Commission on Banks and Securities (CNBV) said in a joint statement on Monday that cryptocurrencies are not legal tender in Mexico and are not considered legal tender under applicable law.

Regulators have warned that financial institutions that work with them are subject to sanctions.

In their statement it says: “The tax authorities reiterate their warnings … about the risks associated with the use of so-called ‘virtual assets’ as a medium of exchange, for example a share with a market value or another form of investment.” He added:

“The country’s financial institutions are not allowed to conduct and give public operations with virtual assets such as Bitcoin, Ether, XRP and others in order to maintain a healthy distance between them and the financial system”.

The statement also warns that cryptocurrencies tend to be volatile and speculative assets, pointing out that they do not perform the same function as money, “because of their acceptance as a means of payment”. Value.” .

In addition, the use of stable coins is not permitted under applicable Mexican law.

At a press conference on Monday, Reuters reported on Mexico’s Finance Minister Arturo Herrera, who said:

The current rules prohibit the use of cryptocurrencies in the Mexican financial system and emphasize that the ban is unlikely to change in the near future.

To explain Cryptocurrencies that are banned for use in the Mexican financial system come after Ricardo Pliego

Ricardo Pliego is the founder and president of Grupo Salinas, a group of companies with interests in telecommunications, media, financial services and retail, according to Wikipedia. Forbes estimates his net worth at $ 15.8 billion.

Ricardo Salinas Pliego is the third richest person in Mexico and says Bitcoin is a must have in any investment portfolio. Pliego already has a bitcoin investment.

He believes Bitcoin is a solid investment like gold. He says that the discussion of its nature is not so important to those who know its properties:

“I think all the advantages Bitcoin has are enough to make it the gold of the modern world … There is no reason to argue whether it is a currency or not.”

Ricardo Salinas argues that Bitcoin’s limited liquidity, ease of portability, and excessive international liquidity are compelling reasons to view Bitcoin as an asset to consider when building a portfolio. Salinas explains that every investor should own Bitcoin.

In a June 27 tweet, Ricardo Salinas Pliego confirmed his claim that he recommends Bitcoin as an investment rather than fiat currency or gold.

In a tweet on Sunday, Mexican billionaire Ricardo Salinas Pliego said his banking business could start using bitcoin, becoming the first bank in the country to accept cryptocurrency:

“Me and my bank (Banco Azteca) are working to become the first bank in Mexico to accept #Bitcoin.”

Bitcoin rebounded around 7.5% on Sunday and was trading at around $ 34,500.

Shortly after his tweets became widespread, Mexican authorities warned of the potential risks and declared the use of cryptocurrencies in the Mexican financial system to be banned.

Join our Facebook group and Telegram group Coincu News to chat with more than 10,000 other people and exchange information about the crypto currency market.

Important NOTE: All content on the website is for informational purposes only and does not constitute investment advice. Your money, the choice is yours.