According to data from Chainalysis, the crash of FTX won't have a long-term effect on the crypto market despite fear and uncertainty.
While El Salvador is leading Bitcoin proponency as legal tender, other countries aren’t quite so ready to take up the cryptocurrency flag. Earlier this week, the president of Mexico Andrés Manuel López Obrador, has confirmed that the South American country is not likely to take to consider Bitcoin or other decentralised currencies as any legal tender.
In a press conference, Obrador said that Mexico is going to “maintain orthodoxy” in how it views and treats its financial management and economics and that it will not be shifting its position on cryptocurrency. In June, Mexican nationals and the Bank of Mexico warned financial institutions that they were not allowed to “carry out and offer to the public operations with virtual assets.”
Obrador does not frequently speak directly to the country’s viewpoint of cryptocurrency. When questioned, however, the Mexican president responded that Bitcoin is not part of the country’s plans to add innovation to its financial infrastructure. He addressed the cryptocurrency with concerns of tax evasion and other illicit activity in the industry. As a result of the decentralized nature of Bitcoin, with anonymity as part of the technology, Obrador noted that Mexico would, in fact, not be following the example of El Salvador in cryptocurrency adoption.
Mexico lawmakers suggest digital assets
Despite Obrador’s strong stance on cryptocurrency, there are lawmakers in the country that are interested in adopting Bitcoin and cryptocurrency. In June, Eduardo Murat Hinojosa, now of the federal government’s senators, took to Twitter to add his advocacy to the cryptocurrency industry.
Voy a promover y proponer ante la Cámara de Diputados un marco legal para las criptomonedas en México #btc
— Eduardo Murat Hinojosa (@eduardomurat) June 8, 2021
The founder of consumer bank Banco Azteca and one of Mexico’s richest citizens Salinas Pliego also suggested that the Bank of Mexico should explore the implementation of cryptocurrencies. Shortly after Hinojasa’s advocacy, Pliego confirmed support for the token, offering that he was working hard to get cryptocurrency use as part of his bank’s services:
— Ricardo Salinas Pliego (@RicardoBSalinas) June 27, 2021
Cryptocurrency use across South and Latin America
While the Mexican president might not be on board Bitcoin and cryptocurrency in the country, other countries in the region are leaning towards the adoption of digital asset classes.
After the vote in the Salvadoran assembly legalised Bitcoin as national tender, politicians in other Latin American countries admitted on social media that they support the decision. There has been interest in the following countries since El Salvador made Bitcoin Law:
- Brazil, and
For example, Paraguayan congressman called Carlos Rejala took to Twitter, saying that the “country must move forward hand in hand with the new generation” with regards to Bitcoin.
Como ya lo decía hace un buen tiempo, nuestro país necesita avanzar de la mano de la nueva generación.
Llegó el momento, nuestro momento.
Esta semana empezamos con un proyecto importante para innovar a Paraguay frente al mundo!
— Carlitos Rejala 🙏🇵🇾🙌 (@carlitosrejala) June 7, 2021
Translated, Rejala’s tweet concludes “we start with an important project to innovate Paraguay in front of the world!”