Is the Latin American BTC revolution exaggerated? Mexico, Paraguay backtrack statements
3 min readMexico’s central bank (Banxico) and financial regulator (CNBV) issued a joint statement confirming that banks are not authorized to use BTC as a payment method.
At the same time, Banxico said they are currently studying the implications of digital currencies. But so far, they remain somewhat unconvinced on the touted benefits of using them.
This comes in direct response to Ricardo Salinas Pliego, Mexico’s third wealthiest man, who recently said his banking business might soon start using BTC.
This latest incident shows the path to national adoption is far from won.
Mexico says no to BTC
Salinas, a long-time advocate of BTC, is chairman of Grupo Salinas – a group of companies with interests in telecommunications, media, retail, and financial services.
It includes one of Mexico’s largest retail banks, Banco Azteca, which operates in Mexico, Panama, Guatemala, Honduras, and Peru.
Salinas recently said that Banco Azteca is working on becoming the first bank in Mexico to accept BTC.
“Sure, I recommend the use of #BTC, and I and my bank are working to be the first bank in Mexico to accept #BTC,” he said.
Here is a video of Mexico’s third wealthiest man explaining why he believes all fiat currencies are a fraud and he wants to hold BTC over the next 30 years.
Incredible to see this from @RicardoBSalinas given his historic wealth and success. pic.twitter.com/FDVPxgWfFj
— Pomp
(@APompliano) June 27, 2021
(@APompliano) However, in direct contravention to this, the country’s central bank and financial regulator poured cold water on this idea.
The authorities warned that cryptocurrencies do not constitute legal tender in Mexico. What’s more, they said, despite Salinas’ approach to the issue, digital assets are not authorized for use in the Mexican financial system.
“The country’s financial institutions are not authorized to carry out and offer to the public operations with virtual assets, such as BTC, Ether, XRP and others, in order to maintain a healthy distance between them and the financial system.”
In a further effort to shut down talk of retail banks offering BTC, the statement mentioned sanctions against those who fail to heed the warnings.
What happened to the Latin American crypto revolution?
In support of El Salvador’s historic move to make BTC legal tender, several Latin American politicians posted pictures of themselves with laser eyes. Including Mexican Senator of the Republic for Nuevo León Indira Kempis Martinez.
Many saw this as a sign that Latin America was ready to move forward as a collective in adopting BTC at the national level.
However, with Mexico’s snub and Paraguay’s opposition to BTC as legal tender, it’s clear that we won’t be seeing a BTC revolution across Latin America anytime soon.
Carlos Rejala, the Paraguayan Congressman who was championing BTC, has now come out saying it’s impossible to make it legal tender in his country.
In what is an anti-climax to the matter, it appears as though Latin America as a whole isn’t ready for change.
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