Bitcoin legalization pushed by Mexican senator despite central bank opposition

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Bitcoin has a strong ally in Mexico. A Mexican senator says crypto must be accepted as a legal tender.

Nuevo Leon State Senator Indira Kempis is convinced that Bitcoin must be recognized as a legal currency because its implementation could promote global financial inclusion.

The provisions of this bill are inspired by the barriers that Mexican residents face in accessing financial products and education.

However, there are a few problems with smoothing. For example, the Central Bank of Mexico has blocked the inclusion of crypto in the country’s financial structure.

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Bitcoin enables participation in the financial system

“It is clear to me that financial exclusion is a major problem that very few of us have dealt with effective solutions,” Kempis said last February.

Image: Cryptonomist

According to the senator, the lack of a formal savings account for more than half of Mexico’s population is largely due to a lack of trust and appreciation in banking institutions, which prevents this segment of the population from having access to a formal financial instrument for savings. .

“Such technology enables us to develop an alternative so that millions of people can participate in the financial system,” the senator explained.

In contrast, about 70 percent of Mexicans have access to financial education, which probably prevents the lion’s share of the population from making rational decisions about savings, debt management and mortgages.

The Mexican senator believes in the possibility of bitcoin

Kempis says that bitcoin acceptance is a generational opportunity for a generation to tackle challenges like inequality and achieve financial inclusion.

“Bitcoin must be recognized as a legal tender in Mexico, because if it doesn’t, and if we don’t have the same choice as El Salvador, it’s extremely difficult to take action,” he noted.

In January this year, the Central Bank of Mexico (CBM) said it was developing its own central bank, the digital currency, the digital peso (CBDC).

It is expected that the Mexican CBDC will be introduced by 2024 to help Mexicans gain access to financial services and cryptocurrencies such as Bitcoin.

BTC total market cap at $384 billion on the daily chart | Source: TradingView.com

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Since taking office in 2018, Kempis has greatly encouraged the cryptocurrency economy over the past few years. He has been employed by a network of crypto entrepreneurs, software developers and lawyers for years.

“Now that I’m taking part in politics, I want to promote it,” he said.

Others, such as the Chia Network, the company behind XCH Coins, are in the process of establishing cryptocurrency mining activities in the country.

Meanwhile, some bitcoin miners have already established themselves in Mexico, and others, such as Chia Network, the company behind XCH Coins, are in the process of setting up cryptocurrency mining operations in the country.

Featured image from The Kitchen Community, chart from TradingView.com



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