Mexico does not accept Bitcoin as a legal currency like El Salvador
Mexican President Andrés Manuel López Obrador said the country was unlikely to follow in El Salvador’s footsteps in adopting cryptocurrencies like bitcoin as legal tender alongside fiat.
During a press conference on Thursday, Obrador called Mexico “must maintain orthodoxy in its financial management” and will not change its stance on cryptocurrencies. The Bank of Mexico and the National Banking and Securities Commission warned in June that financial institutions “cannot conduct virtual asset deals or offer them to the public,” but the president did not address the issue directly on a regular basis.
Obrador made the statement when Mexico was asked if it would follow El Salvador, where Bitcoin has been legal tender since September. He added that while Mexico has a lot of innovation in finance, it should also be aware of the problems related to tax evasion.
At least two lawmakers in Mexico have proposed introducing digital assets to “drive the transition to crypto and fintech”.
Ricardo Salinas Pliego, a billionaire and one of the richest people in Mexico, also said his bank, Banco Azteca, will study cryptocurrency adoption. While there are many individuals in the public and private sectors who support the use of cryptocurrencies, the country’s authorities reported in 2020 that coordinated money laundering involving digital assets has increased.
Other countries across Latin America seem to be taking steps towards greater adoption of crypto, but El Salvador saw a strong wave of protests before and after the introduction of Bitcoin. In September, residents burned down a Chivo kiosk selling cryptocurrencies in the country’s capital during a protest against Bukele’s policies.
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According to Cointelegraph