President Andrés Manuel López Obrador of Mexico recently held a press conference to discuss his government’s stance on cryptocurrency. Obrador claims that his government will continue a traditional approach to financial management and will not innovate much in this area.
He added that is something we will not change. We believe that in terms of financial management, we should stick to the orthodoxy and not try to innovate too much.
The adoption of Bitcoin by El Salvador
El Salvador’s move to make Bitcoin legal tender has sparked political fervor across Latin America. However, according to Mexico’s president, any thoughts of incorporating Bitcoin into the country’s financial system will be rejected.
Rather of altering the national banking system to make it Bitcoin-friendly, the government will instead focus on the threat of tax evasion. We want to ensure that there are no special privileges and that everyone pays their fair share of taxes.
This argument runs counter to Bitcoin narratives from El Salvador and Venezuela, for example. Bitcoin has, in fact, played a significant geopolitical influence in these countries. Mexico’s president, on the other hand, is undeterred.
The truth is that we haven’t experienced any issues with tax collection, which provides us a lot of comfort. Finances are doing well, and we’ve been able to exercise around 80% of this year’s allowed budget; 20% is still missing, but we’re close to finishing. We’ll be able to finish the year without difficulty.
The Bank of Mexico and the National Banking and Securities Commission also jumped on board. They previously published a joint statement expressing their own concerns about digital currency.
Billionaire Ricardo Salinas Pliego, the founder of Banco Azteca, for instance, has been a strong supporter of BTC during its ups and downs. Others, including as Mexican Senator Eduardo Murat Hinojosa, have been vocal supporters of Bitcoin.
Voy a promover y proponer ante la Cámara de Diputados un marco legal para las criptomonedas en México #btc
— Eduardo Murat Hinojosa (@eduardomurat) June 8, 2021
As a result, it appears that Bitcoin and other cryptocurrencies will not be accepted in the Mexican financial system for the time being. Certain powerful people, like in most other nations, continue to encourage, and back the digital asset and bet on its future.