What is Mexico’s Policy on Cryptocurrencies?
After billionaire Ricardo Salinas Pliego, Mexico’s third-richest man shared strong opinions against fiat currencies and advocated for cryptos like Bitcoin, the Mexican government has retained its policy on banning cryptocurrencies.
Ricardo Salinas's disdain for fiat currencies!
Ricardo is the founder and chairman of Grupo Salinas and also an investor who has taken a strong stance against fiat currencies, saying they are fraud. His decades of expertise in investing can be used as a way to back his opinions about the financial system. This tweet from Ricardo Salinas displays his great interest in Bitcoin and how it is necessary to have some amount of cryptocurrencies as an investor. In addition to advising investors who are new to the industry to get educated about cryptos. He has also assured that his bank, Banco Azteca, will be the first in Mexico to adopt cryptocurrencies and provide services related to them. Ricardo has had 10% of his liquid assets in Bitcoin since November 2020, and this number has only grown.
Mexico’s Central bank isn’t budging on the Crypto ban!
Mexico’s central bank has held its policy on cryptocurrencies being outlawed as a financial asset. The country has reiterated the risks of cryptocurrencies being involved with the financial system of Mexico in response to Ricardo Salinas’s recent statements. It has also mentioned that stablecoins are too not permitted to be transacted with or forward the risks that come with cryptocurrencies to bank clients. It is still unclear as to what has caused this contempt towards cryptocurrencies though Mexico’s current economical condition might be a possible reason. The central bank had to boost interest rates to 4.25% last week in order to fend off inflation as it climbs above 6%. Banco Azteca coincidently also operates in El Salvador and Panama, two places that are at the forefront of cryptocurrency acceptance. Regardless
The Secretary of Finance’s detailed report on Crypto policy!
Arturo Herrera has acknowledged the recent intrigue in cryptocurrencies after countries have begun to consider the idea of adopting digital currencies as legal tender. The four-page report highlights the government's current stance on not having any digital currencies as an asset class. The three organizations that were tagged in the tweet have also communicated the risks associated with dealing in cryptocurrencies over the past few years. This certainly came as a hit to Ricardo Salinas’s big plan on making cryptocurrency a viable alternative to Mexico’s fiat currency. Although based on his enthusiasm about cryptocurrencies and power it is obvious that he will make efforts to get around this issue.
