The level of cryptocurrency adoption in Latin America continues to grow despite the uncertainty surrounding the global financial markets. Countries in the region are proposing laws that favour the adoption of cryptocurrencies.
Crypto adoption in Latin America
El Salvador started the wave of cryptocurrency adoption in Latin America. In September, El Salvador adopted the use of Bitcoin as legal tender. The adoption was met with criticism from the World Bank and the International Monetary Fund over the highly volatile nature of cryptocurrencies.
Now, other countries in the region, including Argentina, Brazil, Panama, Paraguay and Mexico, are joining the trend with a friendly crypto regulatory framework. These countries have become more open towards cryptocurrencies as a hedge against inflation.
Mexico joining the race for crypto adoption
This week, Mexico hinted at the adoption of Bitcoin as legal tender. Mexican Senator, Indira Kempis, announced that she would introduce a bill similar to El Salvador-s Bitcoin law. Kempis is a pro-crypto politician in Mexico, and she has advocated for the sector since 2018, after she took office.
There is no certainty that this bill will pass because none of the other senators has come out to support or oppose it. However, the president of Mexico, Andres Manuel Lopez Obrador, had earlier said that Mexico would not follow El Salvador in adopting Bitcoin as legal tender.
Other politicians in Mexico are also rooting for cryptocurrency adoption. Last year, Eduardo Murat Hinojosa of the lower house of Mexican Congress tweeted that he would promote and propose a legal framework for cryptocurrencies. There is also no certainty that this will also be possible.
However, the two politicians have triggered discussions on the role of Bitcoin in Mexico’s economy. While there is less chance of it being adopted as legal tender, Mexico could formulate a regulatory framework for the sector.
Adoption for crypto assets in Mexico is growing, and recently, Coinbase allowed users to directly convert their crypto assets into Mexican pesos. The launch of this capability sheds light on the rapid growth of crypto adoption in Mexico.
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