The news wires started to flicker with stories that the Mexican government was considering legalising Bitcoin. However, before assuming that this is a good indication for crypto adoption, investors should examine the situation more closely.
To begin, a Mexican senator – Indira Kempis – intends to present a draught measure to legalise Bitcoin in the nation, modelled after El Salvador’s own crypto bill. To be clear, this is a long way from Bitcoin being accepted as legal cash in Mexico.
Anthony Pompliano, an investing expert and pundit, was, on the other hand, ecstatic with the news. As he said,
“Now, another nation — Mexico in Central America – is considering making Bitcoin legal money inside its borders. A Mexican lawmaker intends to introduce legislation establishing Bitcoin as legal cash.”
Pompliano stated that the drama really started with El Salvador legalising Bitcoin. “They have sparked a domino effect that has spread across South and Central America. We’ve seen country after country come up and say, ‘I believe we should follow suit.’
Having said that, it is critical to distinguish between law and legalisation. Additionally, Pompliano has a proclivity for making positive but broad remarks about other governments and programmes. When considering India’s 30% tax on the transfer of digital assets, Pompliano concluded that the Indian government would “ensure” that Indians had access to crypto.
However, the fact is that India’s finance minister has not ruled out the potential of a cryptocurrency ban. As a result, we should proceed with care when reading Pompliano’s appraisal of the Bitcoin environment in Mexico. A single senator advocating for cryptocurrency legality in Mexico is not the same as following El Salvador’s lead.
There was no lack of pomp and circumstance surrounding El Salvador’s President Nayib Bukele’s announcement of the Chivo Pets Veterinary Hospital’s impending opening. The hospital’s construction project gained global attention when it was supposedly sponsored using Bitcoin revenues.
However, as more politicians seek for Bitcoin adoption, crypto observers must wonder if they are really engaged with the technology’s ideas or only looking for headlines.
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