Mexican President Rejects the Adoption of Bitcoin As Legal Currency

Mexican President Rejects the Adoption of Bitcoin

October 15, 2021

Reading Time: 2 minutes

Mexican President Andres Manuel Lopez Obrador has rejected the concept of Bitcoin becoming legal tender in a report by Expansión Poltica. Lopez Obrador remarked during a press conference on Oct. 14 that his administration is attempting to avoid much innovation in the domain of financial management:

“We believe that we must retain orthodoxy in financial management,” said President Lopez Obrador

He maintains that his main goals are to ensure that Mexicans are paid well and combat tax evasion.

Lopez Obrador goes on to say that cryptocurrency investment is not required to fund the country’s development.

In June, the Mexican central bank declared that cryptocurrency is prohibited for financial institutions, thwarting the ambitions of Bitcoin-supporting Mexican millionaire Ricardo Salinas Pliego.

El Salvador, a tiny tropical republic in Central America, became the first country to accept Bitcoin as legal currency in early September.

By 2022, according to BitMEX CEO Alexander Höptner, at least five countries will have adopted Bitcoin as their official currency.

The remarks of Bank of Mexico Governor Alejandro Diaz de Leon indicate that Mexico would not follow El Salvador in recognizing the digital currency as a rival legal tender any time soon.

“We think that anybody who gets bitcoin in return for a product or service is more similar to bartering since they are trading a good for a good, not money for a good,” Diaz de Leon said.

He also said that Bitcoin is more akin to a precious metals dimension than everyday legal money.

The CEO of Banxico stated that a cryptocurrency must be a trustworthy payment mechanism to be called money. He went on to say that bitcoin would have to protect its value as well.

The value of cryptocurrencies has frequently fluctuated dramatically in a single day, according to Diaz de Leon.

El Salvador’s historic acceptance of bitcoin as legal money earlier this week has been marred by issues that have led to a worldwide decline in bitcoin’s value.

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