Although it is a topic under constant discussion, the financial association does not believe that Mexico is ready. Banxico considers that it is best to keep a “healthy distance” with the cryptocurrency sector.
The Association of Banks of Mexico (ABM), which groups the main financial institutions in the country, does not believe that the nation is ready to make the decision that El Salvador made to convert Bitcoin into legal tender; at least, not at the moment, according to the agency El Economista.
Although financial institutions in Mexico have been permanently discussing the cryptocurrency phenomenon, the ABM considers that there is still much to put on the table before promoting legislation that considers a digital asset as legal tender. The president of the ABM, Daniel Becker, highlighted in this regard that the association has held conversations with regulators and various other active players in the sector, however, he considers that it is still a subject in full evolution.
Although there is Interest, Mexico is not Yet Ready
Becker indicated that there have been a series of discussions on this matter with the Bank of Mexico (Banxico) with which they have agreed that, in the case of a central entity issuing a cryptocurrency, it would have very different characteristics from Bitcoin and the digital assets that are known today.
The president argues that there are some preliminary initiatives, concerning central banks being able to manage cryptocurrencies in their protocols, which would then already have another feature than the ones people know right now, which has nothing to do with those issued by the government.
For its part, Banxico (which fulfills the functions of the central bank in that nation) has pointed out that digital currencies are a topic of interest, although it has been emphatic that it must keep a “healthy distance” with assets like these as it is a non-regulated item yet.
The statements by Banxico and the AMB appear right when a growing interest in Bitcoin adoption invades the region. After the Salvadoran Congress passed a law that recognizes Bitcoin as an official currency in said country, other Latin American nations are taking similar stances.
In Panama, independent deputy Gabriel Silva indicated this week that he is making a bill related to Bitcoin and hopes to bring it to the National Assembly next month. Meanwhile, the deputy of Paraguay, Carlos Antonio Rejala Helman, also spoke about similar plans. On Thursday, Helman reported that he will present a bill to set regulations on cryptocurrencies in that country in July.
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In El Salvador, three government ministries are studying the possibility of salaries being paid with the main cryptocurrency, once the asset becomes officially a legal tender in the country. CABEI also clarified that it will help the Central American country in the integration and implementation of Bitcoin but the World Bank said it will not be able to provide its support given the environmental and transparency deficiencies.
Also, telecommunications service provider GoldConnet began accepting and receiving cryptocurrency payments. In Colombia, the Ministry of Technology (MinTIC) is now promoting the use of Blockchain among companies through a new national program. And the first Bitcoin exchange-traded fund (ETF) will arrive in Brazil at the end of the month.
By: Jenson Nuñez
