Senator Indira Kempis of Mexico has introduced a bill that would make Bitcoin legal tender in the country. The act’s actions are based on the difficulties Mexican citizens face in trying to access financial products and education. However, the Central Bank of Mexico has been opposed to introducing Bitcoin into the country’s financial system.
Bill proposes making bitcoin legal tender in Mexico
Mexico is another country in Latin America that is looking into what Bitcoin could bring when it is introduced to its economy. This week, Senator Indira Kempis introduced a bill that would amend Mexico’s current currency laws to introduce bitcoin as the country’s legal tender. The bill aims to mimic the behavior of El Salvador, the first country in the world to adopt Bitcoin as legal tender, and mentions that it could help change the financial literacy of many citizens.
The document bases its proposal on the fact that Mexico is one of the continent’s least financially inclusive and less educated countries. Under the proposal, 56 percent of the Mexican population still lacks access to a bank account, meaning more than 67 million people still lack access to the most basic financial tools.
Likewise, 68% of citizens have no access to financial education, ostensibly preventing most Mexicans from making informed decisions about saving, taking out a mortgage, or what to do with credit.
Central Bank Digital Currencies and Bitcoin
However, the bill proposed by Senator Kempis conflicts with the course of action followed by the government and the Central Bank of Mexico. In January, the agency announced that it was working to create a digital peso, its own central bank digital currency (CBDC), expected to be in circulation by 2024, to help Mexicans address financial inclusion.
Additionally, Mexican Finance Minister Arturo Herrera said in June that cryptocurrencies are banned within the Mexican financial system, saying his ban is unlikely to change anytime soon. The measure was announced after Ricardo Salinas Pliego, one of Mexico’s richest men, reported that he was working to make Banco Azteca the first bank in the country to accept bitcoin.
What do you think of the amendment proposed by Mexico to make Bitcoin legal tender? Let us know in the comments section below.
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