Bitcoin Legalization Pushed By Mexican Senator, Despite Central Bank’s Opposition

Bitcoin has a strong ally in Mexico. The crypto must be accepted as a legal tender, a Mexican senator said.

Senator for the state of Nuevo León, Indira Kempis, is certain that Bitcoin must be recognized as legal currency because its implementation might promote worldwide financial inclusivity.

The bill’s provisions are motivated by the obstacles Mexican residents face in gaining access to financial goods and education.

There are, however, a few kinks to smooth out. The Central Bank of Mexico, for instance, has blocked the inclusion of the crypto into the country’s financial framework.

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Bitcoin Enables Participation In Financial System

“It is evident to me that financial exclusion is one of the major issues that few of us have tackled with workable solutions,” Kempis said last February.

Image: Cryptonomist

According to the senator, the fact that more than half of the Mexico’s population lack a formal savings account basically boils down to a lack of trust and appreciation in banking institutions, preventing this segment of the population from having access to a formal financial instrument for savings.

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

In contrast, nearly 70 percent of Mexicans have access to financial education, which presumably inhibits the bulk of the population from making rational decisions on savings, credit management and mortgage.

Mexican Senator Believes In Bitcoin’s Potentials

Kempis continued by stating that Bitcoin acceptance is a once-in-a-generation chance for nations to address challenges such as inequality and attain financial inclusion.

https://t.co/rzNJRigp5u https://t.co/rzNJRigp5u

— Indira Kempis de I. (@IndiraKempis) February 22, 2022

“Bitcoin must be recognized as legal tender in Mexico, because if it is not, and if we do not make the same choice as El Salvador, it is extremely difficult to take action,” she pointed out.

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

It is anticipated that the Mexican CBDC will be in circulation by 2024 in order to assist Mexicans in gaining access to financial services and cryptocurrencies like Bitcoin.

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

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Since assuming office in 2018, Kempis has heavily encouraged the cryptocurrency economy throughout the past few years. She has been engaged by a network of crypto entrepreneurs, software developers, and advocates for years.

“Now that I am participating in politics, I seek to promote it,” she said.

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

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

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