The level of cryptocurrency adoption in Latin America continues to grow despite uncertainty surrounding global financial markets. Countries in the region are proposing laws that favor the adoption of cryptocurrencies.
Cryptocurrency 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 crypto-friendly regulatory framework. These countries have become more open to cryptocurrencies as a hedge against inflation.
Mexico joining the race for cryptocurrency adoption
This week, Mexico suggested adopting Bitcoin as a 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 has championed the sector since 2018 after she took office.
There is no certainty that this bill will pass because none of the other senators came out to support or oppose it. However, the President of Mexico, Andrés Manuel López Obrador, had previously 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 the 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 sparked discussions about Bitcoin’s role in Mexico’s economy. Although there is less chance of being adopted as legal tender, Mexico could formulate a regulatory framework for the sector.
Cryptocurrency adoption in Mexico is growing and recently Coinbase allowed users to directly convert their crypto assets into Mexican pesos. The release of this feature sheds light on the rapid growth of cryptocurrency adoption in Mexico.
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