Mexico’s central financial institution, finance ministry, and banking regulator have collectively issued a warning about cryptocurrency. Finance Minister Arturo Herrera emphasised that cryptocurrencies are prohibited from getting used in Mexico’s monetary system.
The central financial institution of Mexico, the finance secretary, and the Nationwide Banking and Securities Fee (CNBV) stated in a joint assertion Monday that crypto belongings aren’t authorized tender in Mexico and aren’t thought of currencies underneath present legal guidelines.
The regulators warned that monetary establishments working with them are topic to sanctions.
Their assertion reads: “The monetary authorities reiterate their warnings … on the dangers inherent in the usage of so-called ‘digital belongings’ as a way of change, as a retailer of worth or as one other type of funding.” It provides:
The nation’s monetary establishments aren’t licensed to hold out and provide to the general public operations with digital belongings, akin to bitcoin, ether, XRP and others in order to keep up a wholesome distance between them and the monetary system.
The assertion additionally warns that cryptocurrencies are typically risky and speculative belongings, noting that they don’t serve the identical perform as cash, “since their acceptance as a way of fee is proscribed and they don’t seem to be a superb reserve or worth reference.”
As well as, the usage of stablecoins shouldn’t be permitted underneath present Mexican legislation.
At a information convention Monday, Reuters reported Mexico’s finance minister, Arturo Herrera, as saying:
Below present guidelines cryptocurrencies are prohibited from getting used in the Mexican monetary system, underscoring that the prohibition will probably not change in the close to time period.
The authorities’ statements got here after Mexican billionaire Ricardo Salinas Pliego stated Sunday: “I like to recommend the usage of bitcoin, and me and my financial institution are working to be the primary financial institution in Mexico to just accept bitcoin.”
Luis Gonzali, co-director at Franklin Templeton Investments in Mexico, believes that the regulators’ assertion was “a response to the feedback [of] Salinas Pliego,” noting that “It’s a approach of claiming his financial institution can’t settle for bitcoins though he desires to … it’s a approach of placing a cease to him.”
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