Mexico would not follow in El Salvador's footsteps with bitcoin, says Banxico governor

Key facts


  • The executive compared bitcoin to precious metals.

  • Bitcoin is more of a high-risk investment than a means of payment, Diaz de Leon said.

While the world sees how one country already has bitcoin (BTC) as legal tender, there are many nations unwilling to follow in El Salvador’s footsteps. One of them seems to be Mexico, according to recent statements by the governor of the Bank of Mexico (Banxico), Alejandro Diaz de Leon.

According to Díaz de León, bitcoin is not a means of payment nor can it be considered money. In any case, commercial transactions using the cryptocurrency would be more a kind of “barter”, according to his vision.

The Mexican executive referred to this position regarding the cryptocurrency when asked about the recent entry into force of the Bitcoin Law, which gives legal tender status to BTC in El Salvador.

Diaz de Leon said during the webinar The role of your Central Bank

that “bitcoin is more circumscribed as an investment strategy of high volatility and high risk and not necessarily as a means of payment”.

According to the governor of Banxico, the cryptocurrency does not meet three basic criteria to be money: serve as a means of payment, a means of safeguarding value and have a price reference. In this regard, he referred to the volatile nature of the cryptocurrency market.

Indirectly, Díaz de León ended up comparing bitcoin

with gold, a parallelism already installed in the bitcoiner environment to refer to the first cryptocurrency on the market and its potential as a safeguard of value: “it is more like a dimension of precious metal, rather than a legal and everyday currency”. gobernador-banco-mexico-criptomonedas-bitcoin gobernador-banco-mexico-criptomonedas-bitcoin Alejandro Diaz de Leon, governor of the Bank of Mexico, during the webinar. Source: YouTube.

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Mexico and its relationship with bitcoin

This stance regarding bitcoin is very common among central banks and financial institutions

around the world.

And Mexico

is no exception. Last June, the Secretary of Finance and Public Credit, Arturo Herrera Gutiérrez, had already referred to the Salvadoran government’s measure and announced that the North American country would not follow that line.

For Herrera Gutiérrez, the arguments against the adoption of BTC were very similar to those that Díaz de León is wielding now: “they [cryptocurrencies] cannot be considered legal tender”.

l because they are clearly not a store of value, they are only assets that are considered speculative because of their [price] variations,” he said at the time , as quoted by CryptoNews.

In early September, we reviewed in this newspaper statements by the president of the National Banking and Securities Commission (CNBV) of Mexico, Juan Pablo Graf. The executive reiterated that national banks cannot operate with cryptocurrencies.

Meanwhile, bitcoin and cryptocurrency exchanges that are licensed in the country must report on their users’ operations above $87,000, as a way to combat money laundering.