Will Mexico Follow El Salvador and Make Bitcoin Legal Tender?

Mexico, with its robust tech industry, is no stranger to fintech advancements. Leading in fintech laws, the nation has embraced technology wholeheartedly. This tech-friendly environment was evident when Senator Indira Kempis proposed a groundbreaking legislative idea in 2022. She introduced the concept of a central bank digital currency (CBDC) to the forefront of Mexico’s financial conversations.

Diving deeper into the crypto world, Kempis’ interactions with the group that later evolved into Bitso, Mexico’s premier cryptocurrency exchange, became a turning point. This liaison not only expanded her knowledge of Bitcoin but also exposed the myriad challenges crypto pioneers face.

Chainalysis’s findings showcase Mexico’s tech-forward populace. Mexicans have been accessing various cryptocurrency tools, and intriguingly, digital wallets are available even in lesser-known indigenous languages. This highlights the nation’s comprehensive approach to tech inclusivity.

Initially, Kempis’ bill, which emphasized the importance of a CBDC and aimed to establish Bitcoin as legal tender, encountered minimal resistance. The reason, Kempis candidly mentioned, was the general unfamiliarity with Bitcoin. As she put it: “nobody understood Bitcoin.” But as the discourse around the bill intensified, it began to draw diverse reactions, signaling its rising significance.

The Mexican Central Bank is an essential player in this narrative. Its views will be critical in determining the bill’s fate. The Senate keenly awaits a comprehensive review from this banking behemoth. Past leaders of the bank, notably its former head, held reservations about Bitcoin. Presently, Victoria Rodríguez, the bank’s current governor, hasn’t publicly aired her opinions.

President Andrés Manuel López Obrador’s stance has been clear: Mexico wouldn’t mimic El Salvador in embracing Bitcoin as official currency. But political landscapes are ever-changing. Kempis, with her recent announcement of contesting the 2024 presidential elections, might infuse a new dynamic into this debate. Win or lose, she’s resolute in her mission: guiding the nation through well-crafted regulations for the cryptocurrency space.