Mexico’s President rejects Bitcoin as currency

Mexico’s president has confirmed that the country will not follow in the footsteps of El Salvador and introduce cryptocurrencies as legal tender

According to President Andres Manuel Lopez Obrador, Mexico will not introduce cryptocurrencies as legal tender in the near future. Like the local newspaper Expansion Politica reported, at a press conference yesterday, the president dismissed cryptocurrencies as not crucial to the country’s development from a financial point of view.

President Lopez Obrador has so far not commented directly on cryptocurrencies, but in his recent comments he stated that Mexico must remain Orthodox in its financial positioning.

“We will not change in this regard. We believe that we should maintain Orthodoxy in financial management (and) not try to innovate much in financial management.”

Unlike the heads of state in El Salvador and Venezuela, President Lopez Obrador believes that the country does not need to burden itself with the introduction of cryptocurrencies. Instead of making the economy Bitcoin-friendly, the government must focus on tightening tax collection measures to prevent tax evasion.

“The truth is that we have not had any problems in terms of tax collection, and that reassures us a lot”, he said.

Mexico’s Central Bank and the National Banking and Securities Commission issued a joint statement in June warning potential investors about the risks of investing in virtual assets. The institutions also warned against using such assets as a medium of exchange. The announcement came after a statement from billionaire Ricardo Salinas Pliego, who had said his bank was looking into the possibility of accepting Bitcoin.

“Of course, I recommend using Bitcoin, and me and my bank are working to be the first bank in Mexico to accept Bitcoin. If you need more details or information, follow me on my Twitter account”, writePliego.

In Russia, President Vladimir Putin has taken a less radical stance on cryptocurrencies. In an interview moderated by CNBC that on Thursday on the website of the Kremlin has been published,the Russian leader said that he sees value in Bitcoin and other cryptocurrencies. He added that crypto assets could one day be used as a unit for settlement.

Putin also stressed that despite their value and potential usefulness, he does not believe that cryptocurrencies could be used for oil trading. Asked if he sees cryptocurrencies as a potential alternative to the dollar in oil trading in light of recent US sanctions against Russia, the Russian president opined that cryptocurrencies are still immature. He also stressed that the huge energy demand associated with cryptocurrencies could hinder their adoption.

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