Cryptocurrencies such as bitcoin are not legal money in Mexico, according to the central bank, and are not allowed to be utilized in the nation’s economy. The remarks come after Mexican billionaire Ricardo Salinas Pliego announced his intention over the weekend to create Banco Azteca the country’s first bitcoin bank.
Salinas stated in the tweet that he suggested “the use of #Bitcoin” and that he and his bank were “working to be the first bank in Mexico to accept #Bitcoin“ The price of Bitcoin in INR increased over the weekend as a result of Salinas’ tweets in support of the cryptocurrency. He claimed that Bitcoin was an excellent method to broaden one’s investment portfolio and that Banco Azteca was trying to offer the cryptocurrency to its clients.
“The financial authorities reiterate their warnings … on the risks inherent in the use of so-called ‘virtual assets’ as a means of exchange, as a store of value or as another form of investment,” according to Reuters. “The country’s financial institutions are not authorized to carry out and offer to the public operations with virtual assets, such as Bitcoin, Ether, XRP.” It went on to say that this policy is unlikely to change very soon.
In response to Michael Saylor, another Bitcoin bull, Salinas, who heads one of the country’s largest conglomerates, tweeted that he recommended using the cryptocurrency, which has lost most of its gains this year.
In November of last year, when bitcoin was selling at $18,000, the Mexican billionaire announced that the digital currency made up 10% of his portfolio. Since then, Bitcoin has climbed approximately 95%, although it is still down 45 percent from its April high. This is primarily due to China’s rising anti-cryptocurrency crackdown and a growing discussion regarding bitcoin’s environmental effect, as well as Tesla and SpaceX CEO Elon Musk’s tweets against the virtual currency.
According to Forbes, Salinas is the third richest person in Mexico, with a net worth of $15.8 billion. His corporation has a variety of retail and media enterprises in addition to the bank. El Salvador declared a week ago that it will make bitcoin legal money later this year.
Because of their high rates of inflation and currency depreciation, bitcoiners frequently look to Latin American economies — notably those of Venezuela, Argentina, and Brazil — as examples of markets that may profit from bitcoin as an alternative to their state currencies.
Salinas claimed in a video that he had spent a lot of time researching Bitcoin and believed it was an asset that should be included in every investor’s portfolio. He also briefly mentioned fiat money, calling it a “fraud” and “stinky.” The video was subtitled in English. The third-richest individual in Mexico stated that Bitcoin’s finite quantity of 21 million units was the key, and that if he had to choose between two assets 30 years in the future, he would choose Bitcoin.