Mexican President Andrés Manuel López Obrador said the country would hardly follow El Salvador’s leadership by using cryptocurrencies such as bitcoin as a legal tender along with securities.
At a news conference on Thursday, Obrador, also known as AMLO, said Mexico “must remain faithful” to its economic governance and will not change its attitude toward cryptocurrencies. The Bank of Mexico and the National Banking and Securities Commission issued a statement in June warning that financial institutions “are not authorized to carry out and offer public transactions in virtual assets,” but the president did not specifically address it.
AMLO responded to a reporter who asked if Mexico would consider following the example of El Salvador, where Bitcoin (BTC) has been accepted as a legal tender since September. He added that although there has been a lot of innovation in finance, Mexico must also be aware of the problems associated with tax evasion.
At least two legislators in Mexico have proposed that the country use digital assets to “sharpen the transition to crypto- and financial technology”. Ricardo Salinas Blego, a billionaire and one of the richest men in Mexico and founder of Bank Azteca, said the central bank would look at accepting cryptocurrencies. While there are many individuals in the public and private sectors in the country who support the use of cryptocurrencies, the country’s authorities reported in 2020 that cartels are increasingly laundering money using digital assets.
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It seems that other countries across Latin America have taken steps towards wider adoption of cryptocurrencies, but opposition arose in El Salvador after President Neb Pockel announced that he would come out with legal tender for bitcoin. In September, residents burned down the Chivo crypto booth in the country’s capital during a protest march against Bukele’s policies.