Should Mexico Embrace Bitcoin as Legal Tender?

Last year, the emergence of a bill by the freshman Mexican Senator Indira Kempis aimed at establishing a Central Bank Digital Currency (CBDC) garnered widespread attention.

Presently, she is focusing on incorporating Bitcoin as a fundamental component of her political platform.

Indira Kempis serves as a congresswoman representing Nuevo León, a state located north of Mexico City that shares a brief border with Texas.

Kempis delved into Bitcoin advocacy after acknowledging the obstacles confronting entrepreneurs.

Her original proposal designated the Bank Of Mexico (Banco de México) as the exclusive issuer of digital currency, but it was later revised to incorporate Bitcoin, prompted by criticism from the cryptocurrency community.

She said:

“It was a pragmatic approach, and a first step towards establishing the necessary legal framework for the country to acknowledge—and ultimately accept—Bitcoin as legal tender.”

In the early stages, Kempis observed a limited response to her proposal, as Bitcoin was not well understood by many.

However, as it gains more prominence, she observed a mix of both favourable and unfavourable reactions to her initiative.

Despite the ongoing discussions, Kempis has demonstrated unwavering determination in her pursuit to push this bill forward. She mentioned:

“If El Salvador could do it, surely we can as well,”

Bitcoin in El Salvador

El Salvador made history in 2021 by becoming the first country to adopt Bitcoin as legal tender, approved by its Legislative Assembly.

The decision to make Bitcoin legal tender was primarily motivated by the desire to foster financial inclusion, streamline remittances, and boost economic growth.

Additionally, the move aimed to attract investments and encourage innovation within the nation’s economy.

Despite the high expectations for economic progress in El Salvador, the country has continued to grapple with persistent economic challenges and downturns.

One of the resident in El Salvador voiced out his concerns:

“I don’t think anything has changed, except that the country is more recognized than before, but the economic life of Salvadorans remains the same or worse than a few years ago. What has improved is the issue of violence and crime, but economically, I can say that nothing has changed.”

Adoption of Bitcoin in Mexico Remains Uncertain

Despite Kempis’s enthusiasm in advocating for Bitcoin as legal tender in Mexico, the final decision remains uncertain.

Drawing from El Salvador’s precedent as the pioneer in adopting Bitcoin, the move did not yield the expected positive impact on their economy.

Consequently, her initiative could potentially receive unfavourable reactions.

* Original content written by Coinlive. Coinbold is licensed to distribute this content by Coinlive.

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