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The government of Mexico says that it’s planning on releasing a central bank digital currency (CBDC) by 2024.
A new post from the Central American nation’s official Twitter account cites the importance of emerging financial technologies in facilitating access to banking for its population.
The Gobierno de Mexico says,
“The Banxico [Central Bank of Mexico] reports that by 2024 it will have its own digital currency in circulation, considering that these new technologies and the next-generation payment infrastructure are extremely important as options of great value to advance financial inclusion in the country.”
The announcement is a significant development toward formal cryptocurrency adoption for Mexico. Back in June, the Central Bank of Mexico issued a press release affirming the institution’s stance against cryptocurrencies.
“Virtual assets do not constitute legal tender in Mexico nor are they currencies under the current legal framework.
The country’s financial institutions are not authorized to carry out and offer to the public trading with virtual assets… in order to maintain a healthy distance between them and the financial system.”
Regarding stablecoins, the document says,
“Recently there have been announcements about the issuance of the so-called ‘stablecoins.’
It should be remembered that Mexican legislation establishes that in no case shall be understood as a virtual asset any other asset denominated in currency of legal tender or in foreign currency.“
Mexican billionaire and cryptocurrency advocate Ricardo Salinas Pliego, when prompted by another Twitter user for his opinion on the forthcoming CBDC, replied with one word,
Pliego has previously touted Bitcoin specifically due to the BTC‘s portability and capped supply.
“It’s an asset that has international value that is traded with enormous liquidity at a global level.
The finite supply of Bitcoin, the 21 million, is the key part.
Fiat is a fraud.”
Earlier this month, U.S. Secretary of the Treasury Janet Yellen said she’s still undecided whether or not the United States will implement a CBDC.
And back in March, the Bank of Korea’s governor speculated that CBDCs could reduce the demand for digital assets not sanctioned by governments, such as Bitcoin.
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Mexico financial regulatory authorities issued a joint statement Monday, prohibiting financial institutions from using cryptocurrencies like Bitcoin (BTC) in the financial system in the country.
The statement just came a day after Mexico Billionaire Ricardo Salinas Pliego’s comments over the weekend, who claimed to develop his bank Banco Azteca as the first financial institutions to accept Bitcoin.
Regulatory watchdogs, including the Central Bank of Mexico (Banco de México), the finance ministry and banking regulators warned the risk of the crypto-assets, saying that the authorities would not consider these “virtual assets” as a “means of exchange, as a store of value or the form of investment” under the current Mexican legal framework, the statement said, according to Reuters.
“The country’s financial institutions are not authorized to carry out and offer to the public operations with virtual assets, such as Bitcoin, Ether, XRP and others to maintain a healthy distance between them and financial system.”
Nevertheless, Banco Azteca was not directly quoted in the authorities’ statement.
According to CNBC, the Central Bank of Mexico is dealing with domestic inflation aggressively, raising interest rates to 4.25% last week. However, the public is concerned about devaluation as the local inflation rate climbs above 6%. Salinas even has called the “fiat as a fraud” in an interview previously.
The price of Bitcoin was trading at $34,812, slightly up 0.46% during the intraday, according to CoinMarketCap.
Image source: Shutterstock
Mexican billionaire Ricardo Salinas Pliego said he is working with his bank, Banco Azteca, to be the first in Mexico to accept bitcoin.
Ricardo Salinas Pliego, Mexico’s third-wealthiest man and the owner of Banco Azteca as well as a major business empire, reaffirmed his Bitcoin endorsement and shared that he is working with his bank to become the first in Mexico to accept BTC.
“Sure, I recommend the use of 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,” Pliego tweeted in response to MicroStrategy CEO Michael Saylor.
Saylor quoted a video in which Pliego explained what he likes about Bitcoin and why he does not appreciate the current monetary system based on fiat currencies, which he called “a fraud.”
“I have invested a lot of time studying [bitcoin] and I believe it’s an asset that should be part of every investor’s portfolio,” Pliego said in the video. “The finite supply of bitcoin, the 21 million, is the key part of the whole thing … fiat is a fraud.”
Pliego also mentioned inflation in his home country, citing the heavy debasement that the Mexican peso has experienced against the dollar since the billionaire started his career in 1981. At the time, one dollar could buy 20 Mexican pesos, but according to Pliego, now that figure has climbed to 20,000 pesos.
“The fraud in fiat is inherent to the fiat system, and we can see it take place in the U.S. right now,” the Mexican billionaire continued. “The monetary emission went to the moon … the dollar as hard money is a joke.”
Finally, Pliego said in the video that if he had to choose only one asset, good or currency to hold through the next 30 years, he would select bitcoin and “no stinky fiat for any reason … no paper bills.”
The billionaire, who said last year that he holds 10% of his liquid portfolio in BTC, has a fortune with stakes in the retail, banking and broadcast businesses. According to the Bloomberg Billionaire Index, Pliego currently is the world’s 137th-richest person, with an estimated $15.4 billion net worth.
The third richest man in Mexico, Ricardo Salinas Pliego, has doubled down on his support for Bitcoin, revealing plans to open the first BTC accepting bank in the country.
On June 27, the Mexican billionaire tweeted his support for the widespread adoption of BTC, noting that his bank is “working” to become the first in Mexico to accept the world’s leading digital asset.
The comments follow a massive endorsement for Bitcoin by Salinas, who stated that it was “absolutely right” to think of Bitcoin as the new gold.
Sure, I recommend the use of #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 .
— Ricardo Salinas Pliego (@RicardoBSalinas) June 27, 2021
Salinas is the founder and chairman of Grupo Salinas, a Mexican corporate conglomerate spanning television and radio network TV Azteca, consumer electronics retailer Grupo Elektra, football club Mazatlan F.C., and major local bank, Banco Azteca.
Banco Azteca, which had annual revenue of $2.54 billion in 2020, operates in Mexico, Panama, Guatemala, Honduras, and Peru. The company, which began operating the bank in 2002, offers consumer credit for goods, personal and small business loans, credit cards, mortgages, and payroll systems.
According to the Bloomberg Billionaires Index, Salinas’ fortune has risen by $2.8 billion this year to tag $15.8 billion.
The news outlet added that Salinas said he invested 10% of his liquid portfolio into Bitcoin last year. He has professed his veneration for the asset on multiple occasions, including in an interview with Cointelegraph at the beginning of 2021.
Related: Mexico’s second richest man says Bitcoin is his ‘best investment ever
In September 2020, San Francisco-based crypto exchange Kraken became the first cryptocurrency business to receive a charter to operate as a bank in the United States after receiving licensing from the crypto-friendly state of Wyoming. In October of the same year, the Wyoming State Banking Board voted to grant financial institution Avanti a bank charter for crypto-related services.
Late last year, the Office of the Comptroller of the Currency introduced a charter allowing fintech firms to offer lending products without requiring oversight from state banking regulators. Crypto custodian, Anchorage, became the first crypto firm to receive licensing under the charter in January 2021.
Ricardo Salinas Pliego, a Mexican billionaire, endorsed the use of Bitcoin (BTC), saying his bank Banco Azteca will develop the first BTC banking business in Mexico.
The 65-year-old third-richest tycoon in Mexico said on Twitter Sunday, indicating “he recommends the use of BTC”; his bank and himself “will be the first bank to accept BTC in Mexico”.
The owner of Banco Azteca- the biggest bank in the country, responded to MicroStrategy Inc. founder Michael Saylor, who was commenting on video footage. The Mexican tycoon criticized the national fiat- Mexico peso as a “fraud” in that video, blaming the government’s failure and devaluing the fiat money.
On Sunday, Salinas said his bank and himself are working to be the first financial institution in Mexico to accept BTC in Mexico. He also suggested all investors should study cryptocurrency and its future. This Mexican crypto fan has called BTC a new gold, arguing the way is “much more portable, calling to transport Bitcoin is much easier than having pockets gold bars,”
According to data from Bloomberg, Salinas owns an estimated $15.8 billion in assets; his businesses are widespread across retail, banking and broadcast sectors. The Mexican fortune has accumulated 2.8 billion more this year. Salinas said last November that around 10% of the liquid portfolio had invested in Bitcoin.
Banco Azteca does not respond to Salinas’s latest comment so far.
On the other hand, MicroStrategy has recently acquired over 13,000 BTC, owning more than 100,000 BTC. However, the purchase did not stimulate the market to detach from the FUD sentiment, leading to a drastic fluctuation due to China tightened its regulatory supervision and strengthened its crackdown actions against Bitcoin mining activities in Sichuan province.
Bitcoin was up approximately 4.30%, trading at around $34,456 during the intraday, according to Coindesk.
Image source: Wikipedia
Mexico’s third wealthiest billionaire according to Forbes is a Bitcoin fan. Ricardo Salinas Pliego sure did his homework, and he’s here to make you see the light. The billionaire recently announced that he holds 10% of his portfolio in Bitcoin. Why? Salinas Pliego knows a few of the reasons that make BTC the soundest money that the world has ever seen.
The subtitled video arrives via podcaster Anthony Pompliano, who says, “Incredible to see this from @RicardoBSalinas given his historic wealth and success.”
Here is a video of Mexico’s third wealthiest man explaining why he believes all fiat currencies are a fraud and he wants to hold bitcoin over the next 30 years.
Incredible to see this from @RicardoBSalinas given his historic wealth and success. pic.twitter.com/FDVPxgWfFj
— Pomp 🌪 (@APompliano) June 27, 2021
If you can speak Spanish and have eight minutes to spare, the original video comes from José Pimpo’s YouTube channel.
Related Reading | The Wall between US and Mexico May Work out Well for Bitcoin
According to Michael Saylor, you have to invest at least 100 hours studying Bitcoin before you start to get it. His Mexican counterpart here, Salinas Pliego, evidently put in the time. About Bitcoin, he says:
“I’ve invested a lot of time studying it, and I think that it’s an asset that should be part of every investor’s portfolio. It’s a valuable asset, with international value, that’s traded with enormous liquidity at a global level. And that’s reason enough for it to be part of any portfolio. Period.”
Those are important reasons, but not something that can’t be said about the Dollar. The US’s currency holds international value and you can exchange it with ease for local money in any market. However…
The facts are the facts, money printing and inflation devalue the purchasing power of all the holders. There are no two ways about that. Or, as Salinas Pliego puts it:
“Fiat is a fraud. I started my professional career in ‘81. The Peso was at 20 x 1 (USD.) Today, we are at 20.000 x 1. That’s all there’s to know. And that’s here in Mexico, because if we look at Venezuela, Argentina, or Zimbawe, the numbers loose all proportion. The fraud of fiat is something inherent to the fiat system, and we’re watching it happen in the USA. The monetary emission went to the moon, you understand. The Dollar as hard money is a joke.”
It’s worth noting that in 1993, Mexico phased out the Peso (MXP) and introduced the Nuevo Peso (MXN, “New Peso”.) One MXN is worth one thousand MXP. So, Salinas Pliego’s numbers are correct.
Also, notice the casual mention of the “went to the moon” meme. This man clearly studies the crypto sphere.
Sorry, Vitalik fans. Ethereum has many qualities, but being a store of value isn’t one. Salinas Pliego puts it in simple words:
“Bitcoin’s finite supply, the 21 million, that’s the key of the whole thing. That’s what I was saying about Ethereum. As long as they don’t have a finite supply, I don’t believe them at all. For all I know, they emit more and your asset depreciates.”
And yes, when the EIP 1559 proposal comes into effect, Ethereum will burn some ETH after every transaction. Still, the daily issuance will be much higher than the daily burns. And there’ll not be a hard cap.
Related Reading | Bitreserve adds Bitpeso and Bitrupee to Support 8 Currencies
For a quick profile, we’ll pass the mic to Forbes:
Ricardo Salinas Pliego runs the number two Mexican TV broadcaster, TV Azteca, and retailer Grupo Elektra.
His Grupo Elektra targets lower middle class consumers who borrow money from his banking arm, Banco Azteca, to buy items at Elektra stores.
Elektra, which is publicly traded, was founded in the 1950s by Ricardo’s grandfather, Hugo Salinas Rocha.
Salinas appointed a new CEO to TV Azteca in January 2021, replacing his son, Benjamin Salinas Sada, who he’d appointed in 2015.
Among the world’s billionaires, Salinas Pliego is currently at #166 according to the same magazine.
BTC price chart on Bittrex | Source: BTC/USD on TradingView.com