Mexico’s Bank Issues Bitcoin Advisory, Bars Its Use By Financial

In a press statement released on the 10th of March, Mexico’s Central Bank, aptly named the Bank of Mexico, has issued an advisory related to bitcoin, as pointed out by our friends at CoinDesk.

Translated copies reveal much of the same warnings the bitcoin community is accustomed to at this point.

The advisory begins with a very brief primer on the digital currency, and works its way to note that “The current legal requirements do not recognize them as an official medium of exchange nor as a store of value or any other form of investment.”

The Bank of Mexico, or Banco De México, warns citizens that bitcoin is not legal tender as they are quite obviously not issued by the Bank of Mexico, nor by any other financial entity.

The Bank notes they do not regulate or supervise bitcoin activity, and there is potential for use of the digital currency for illicit activities — warnings we’ve heard scores of times.

There is no guarantee or regulation to ensure that consumers and businesses that acquire this type of asset can recuperate their money. Moreover, since there is no identifiable organization that issues these assets, or third party that assumes the responsibility for these assets, it would be difficult to have legal recourse if they are lost.

Interestingly, the central bank warns that financial institutions are not authorized to deal with bitcoin in any way, shape, or form. There hasn’t been any evidence or reports of this happening, but now that it’s out there, institutions are obligated to comply.

The Bank of Mexico says they will continue to watch this emerging space, and will issue appropriate regulation should the need arise.

Exit mobile version