Mexicans Continue Using Cryptocurrencies Despite Warnings from the Authorities

Facebooktwitterredditpinterestlinkedinmailby feather

According to estimates, over 12% of Mexico’s population owns cryptocurrencies. Bitcoin is the most popular currency in the country, with Ethereum, Binance Coin, Dogecoin, and Cardano being popular as well. The fact that so many people in Mexico use cryptocurrencies is even more surprising considering the fact that the government is strongly against them.

Cryptos in Mexico are not legal tender and the country won’t follow in El Salvador’s footsteps anytime soon. With the government’s block, holders are not able to withdraw cryptos to a Mexican debit card. Still, people continue using them, finding ways to trade on the market and get their hands on their profits.

And it’s not just individuals – over 100 business scattered across Mexico are also using cryptos.

A Mexican Crypto Boom

Over 100 shops and businesses in Mexico are taking advantage of the fact that the country has yet to regulate cryptocurrencies. Seeing Mexico’s crypto boom in the past year or two, businesses have opted to accept cryptocurrencies instead of going against the grain. It has been a pretty successful experiment so far, with Mexicans also delighted to be able to pay with cryptocurrencies.

One of those businesses is the Bitcoin Embassy Bar in Mexico City. Situated in the lavish Roma neighborhood, the bar gives Bitcoin customers attractive deals with discounts. Bitcoin Embassy Bar is one of the earliest establishments to do so and one of the most successful crypto businesses in Mexico as well.

Its owner, 31-year old Lorena Ortiz, denies the notion that Bitcoin and cryptos shouldn’t be considered real money. She says that history has taught us that the concept of money is a consensus of the population. Right now, the popular is very much interested in cryptocurrencies, making them real money in Ortiz’s eyes. That’s quite a mature opinion from a 31-year old entrepreneur in a country where cryptos are on the rise.

Despite the fact that people love them, though, the government is not aiming for legalization.

The Mexican President Rules Out Legalization

With the popularity of Bitcoin on the rise, many Mexicans have asked the government to make cryptos legal tender. That won’t happen anytime soon. The Bank of Mexico and the President’s offices have issued a statement a few months ago warning everyone about the implications of dealing in digital assets.

The President himself, Andres Manuel Lopez Obrador, said that the government isn’t very likely to follow in El Salvador’s footsteps. He cited tax evasion reasons and the fact that cryptos are often used by the cartels to handle illegal transactions.

Lawmakers and entrepreneurs have been pushing for a change, yet the President maintains his opinion that Mexico must “maintain orthodoxy” when it comes to payments.

Other countries in Latin America have been more open to the idea of cryptocurrencies after El Salvador made them legal tender in September. The move was met with resistance, with more than a few rallies against President Nayib Bukele’s policies. It remains to be seen what eventually happens, although the experiment will need some time before we see the results.

October 27, 2021: • No Comments

Comments are closed.