The Mexican Government Doesn't Want Crypto Money To Be A Legitimate Payment, The Reason Is Laundering Drug Cartel Money

JAKARTA – The Mexican government insists that crypto money is still a digital asset and has not been officially recognized as a legal tender. Mexico's financial regulator issued the statement at a press conference on Monday, June 28.

The country's central bank, the Bank of Mexico and the National Securities and Banking Commission agreed to warn crypto investors that these assets are still very risky if used as a medium of exchange and store of value.

Launching Cointelegraph, the financial regulator stressed that any financial institution based in Mexico is “not authorized to conduct and offer public operations with virtual assets.” They specifically mention Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP).

The warning appears to be in response to plans recently announced by Ricardo Salinas Pliego that intends to adopt Bitcoin through his bank, Banco Azteca.

The third richest person in Mexico has announced that it may accept Bitcoin. The move is part of a Bitcoin campaign to get the government to adopt the cryptocurrency BTC.

This received a response from the Minister of Finance of Mexico, Arturo Herrera by saying that financial institutions in Mexico are prohibited from using cryptocurrencies. Herrera stressed that the policy will not change in the near future.

The Mexican government is currently studying cryptocurrencies and their potential uses for blockchain technology. However, the Mexican government still calls these digital assets volatile, speculative, and less effective than fiat money.

On the other hand, Mexico's anti-crypto stance strengthened after its neighbor, El Salvador adopted Bitcoin as the country's official currency. In addition, Paraguay also plans to do the same. Paraguay congressman Carlos Rejala is reportedly going to announce a cryptocurrency legalization bill on July 14.

It seems that Mexico is still undecided about adopting Bitcoin. Because the cartels in Mexico do money laundering through crypto money. This was not anticipated by the Mexican government so they insisted on rejecting the adoption of cryptocurrencies.