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Mexico to propose legal framework for cryptocurrencies

 

Senator Eduardo Murat Hinojosa has announced that he will propose a legal framework for virtual currencies in the chamber. The news comes shortly after El Salvador made Bitcoin legal tender.

After learning that several Latin American countries such as El Salvador, Paraguay and Panama have promoted cryptocurrencies and, in the case of El Salvador, have legally ratified and as legal tender the use of Bitcoin, Mexico seems be next.

The nation of El Salvador was the first country to introduce Bitcoin as legal tender, and Congress on Wednesday approved the motion with 62 out of 84 votes. Additionally, El Salvador announced it will promote the use of energy green thanks to geothermal energy. North of the border, the Mexican federal government senator announced on his Twitter account that he would propose a legal framework for virtual currencies.

The ripple effect of cryptocurrency in Latin America stands in stark contrast to the total ban in China and the attitude of some of the richest nations in the world towards cryptocurrencies. The exact reason for the increasing adoption of cryptocurrencies in Latin American countries is complex, but it is due to several factors.

With a large percentage of the population of Latin American countries without a bank account, cryptocurrency gives people access to financial services that would otherwise be limited. Countries like Mexico, Argentina, Venezuela, and El Salvador make massive use of digital currencies, in part because of the relative security they offer during times of economic crisis. Argentina in particular has a volatile national currency that its citizens are wary of.

As an alternative to volatile currencies and often equally volatile socio-political climates, countries in this region of the world find relative stability in virtual currencies. If Mexico's crypto proposal were ratified, it would bolster the country's support for cryptocurrencies and give Mexico's crypto economy a welcome boost, while building on Bitcoin's momentum in other countries. neighbors.

Disclaimer: This article is for informational purposes only. It is not offered or used for legal, tax, investment, financial or other advice.

 

 

 

 


 

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