Mexico’s Finance Minister Reiterates Cryptocurrencies Are Not Legal Tender Assets
Mexico City - Mexico’s finance minister, Arturo Herrera, has reaffirmed that cryptocurrencies are not recognized as legal tender assets within the country’s financial system. This statement comes as a surprise to many, particularly in light of recent announcements by billionaire Ricardo Salinas Pliego to make his bank, Banco Azteca, the first in Mexico to accept bitcoin.
Background
Salinas had announced plans to make Banco Azteca the first bank in Mexico to accept cryptocurrencies just hours before Herrera’s comments. While Herrera’s statements were not explicitly tied to Salinas’ pledge, they suggest that the government is unlikely to recognize cryptocurrencies as a form of legal tender.
Government Position on Cryptocurrencies
According to Herrera, the government’s position on cryptocurrencies is outlined in a forthcoming four-page communiqué. The document warns about the risks associated with using cryptocurrencies as a form of exchange, store of value, or investment. Specifically, it:
- Warns about the risks of using cryptocurrencies
- Emphasizes that financial institutions in Mexico are not authorized to deal with virtual assets such as bitcoin, ether, XRP, and others
- Indicates that any institution found to be conducting or offering operations with these assets without authorization will be subject to applicable sanctions
Impact on Cryptocurrency Market
The move is seen as a major setback for the growth of the cryptocurrency market in Mexico. Bitso, the largest cryptocurrency exchange in Latin America, is headquartered in Mexico and recently raised $250 million in its Series C funding round, reaching a valuation of $2.2 billion.
Industry Expert Perspective
Despite the government’s stance, some industry experts believe that the move could ultimately benefit the country by preventing the misuse of cryptocurrencies for financial crimes such as money laundering and terrorist financing.
Conclusion
Mexico’s finance minister has reiterated that cryptocurrencies are not recognized as legal tender assets within the country’s financial system. While this statement may be a setback for the growth of the cryptocurrency market in Mexico, it also highlights the government’s commitment to preventing financial crimes and ensuring the stability of the financial system.