Bank of Mexico Governor Dismisses Bitcoin’s Position as Reliable Legal Tender


The governor of the Bank of Mexico, Alejandro Díaz de León, declared that Bitcoin is not a reliable legal tender. He said that the volatility of this digital currency is too great for it to be considered as a currency good enough for large-scale adoption. 

The director of the central bank also noted that the position of bitcoin in today’s financial industry is very similar to the dimension of precious metals when you compare them to regular, fiat currencies. 

The central bank chief of the country largely questioned the position of bitcoin as a viable legal tender, saying that crypto transactions are more similar to bartering and it is very hard to perceive it as actual money. This stands to be completely different from the approach that El Salvador has taken recently, adopting bitcoin as a legal tender and requiring businesses to accept bitcoin payments. 

In addition, Díaz de León also underlined the risks involved in the cryptocurrency trading market, underlining the risks involved in crypto trading and the volatility of the market. The risks of bitcoin volatility were very easily seen in Salvador as well when right after the adoption the digital currency price dropped drastically. 

The director of Mexico’s central bank also said that people need reliability when it comes to payment executions, saying that people will not enjoy the situation when their salary goes up and down 10 percent from one day to another. A few months back, the Finance Ministry of Mexico issued a warning against institutional offerings that are related to digital currencies. They have also highlighted the risks associated with payments using cryptocurrencies.

There are numerous options that local traders in Mexico have when it comes to crypto investments and the interest in the market is predicted to grow further in the coming years.

Crypto Trading in Mexico

Crypto trading in Mexico is very popular among the younger generation of the country. There are numerous factors supporting the popularity of crypto trading in Mexico, one of the main factors being how easy it has become to invest in the crypto trading market. 

As of now, people can easily invest in cryptocurrencies in a matter of minutes by simply signing up at one of the available crypto exchanges. The majority of these exchanges have partnered with leading software developing companies in the market and offer traders access to automated trading robots, which make trading even easier.

Among the main benefits of bitcoin trading bot in Mexico is the fact that traders are not required to spend hours analyzing the market and making predictions about the direction the market could take. In fact, it only takes them a few minutes to analyze the market. The crypto trading robots are even able to open and close positions for crypto traders, making the market even easier to access for beginners. 

Mexico is one of the countries from Latin America known for the huge popularity of the crypto trading market. In fact, it is among the countries in the region with the highest adoption of cryptocurrencies. The country has its own, so-called Fintech Law, which also covers the cryptocurrency market and aims at creating more opportunities for traders. 

However, while the crypto trading market is very popular in the country, it is still very far from large-scale adoption. As the recent comments made by the Central Bank director indicate, there still is a long way for the crypto market in the country to go. 

Still, cryptocurrencies remain very popular in Mexico. The country has over 100 establishments that are already accepting cryptocurrencies and this has been happening for a few years now. Because of the huge popularity of the cryptocurrency trading market in the country, the government might not have another choice but to find ways to support the further development of the market. 

The Mazatlan Post