News wires began to flash as there were reports of the Mexican administration planning to legalize Bitcoin. However, before concluding this is a bullish sign for crypto adoption, investors must take a closer look at what’s going on.
Bitcoin rising in Mexico?
The first thing to note is that a Mexican senator – Indira Kempis – has plans to introduce a draft bill inspired by El Salvador’s own crypto bill, to legalize Bitcoin in the country. To be noted, this is a very long way from seeing Bitcoin as legal tender in Mexico.
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However, investment analyst and commentator Anthony Pompliano was excited about the update. He said,
“Now, we have another country – Mexico in Central America – that’s looking to make Bitcoin legal tender within their jurisdiction. A Mexican senator is going to put forward legislation to make Bitcoin legal tender.”
Speaking about how the story really began with El Salvador legalizing Bitcoin, Pompliano noted,
“They’ve kicked off a domino effect throughout South and Central America. We’ve seen country after country after country have local, state, or national politicians come forward and say, ‘I think we should follow suit.’ “
Time to mince your words
That said, however, it’s vital not to confuse legislation with legalization. Adding to that, Pompliano has a tendency to make optimistic but sweeping statements about international governments and policies. When discussing India’s 30% tax on the transfer of digital assets, Pompliano concluded that the government of India was going to “make sure” that Indians get crypto.
The reality, however, is that India’s finance minister still hasn’t ruled out the possibility of a crypto ban.
For this reason, we need to take in Pompliano’s analysis of the Bitcoin scene in Mexico with a healthy amount of caution. A single senator calling for crypto legalization in Mexico is very different from following El Salvador’s footsteps.
And speaking of El Salvador. . .
There was no shortage of pomp and splendor as El Salvador’s President Nayib Bukele announced the upcoming launch of the Chivo Pets Veterinary Hospital. The project to build the hospital enjoyed worldwide fame as it was reportedly funded using Bitcoin profits.
However, as more and more politicians push for Bitcoin acceptance, crypto watchers need to ask if they are seriously engaging with the principles of the technology, or just going headline hunting.
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