Mexican Central Bank May Ban Exchanges in What Could Be Icing on the Crypto Cake FinTech Law
Banco de México, the Mexican Central Bank, is currently creating a plan that will effectively ban all crypto exchanges from the country. Despite this not being the official plan of the bank, a new set of measures which were reported by Coin Center, a U. S.-based advocacy center for cryptos, can effectively ban exchanges from the country.
How would this happen? Basically, banks would not be able to provide services for crypto exchanges, which would cut them off the local banking system. No law would effectively make their operations illegal, but they would become impossible.
Does this sound familiar to you? If it does, it’s because it is literally the same thing that happened in India around a year ago. The Reserve Bank of India (RBI), which acts as the local central bank, has also prevented banks from offering their services to crypto exchanges in the country, which basically bankrupted some of them and got in the way of their work.
Regulation Comes Directly From The Central Bank
It is clear that the Mexican Central Bank is about to declare war on crypto exchanges. The bank has not shown any sign of seeing a crypto ecosystem flourish in the country at all and now it will start legislation that will prevent exchanges from accessing financial institutions.
According to Coin Center, this just shows how the bank is dismissive with cryptos and largely ignorant about the technology.
The reason for banning the exchanges is pretty much stupid, too. The bank has affirmed that the “complexity of the mathematical equations” and the difficulty of the users to understand cryptos, together with the volatility issues, “can only be addressed by quarantining consumers”.
The bank literally wants to cut people’s access to crypto because their staff does not understand them very well, so they believe that nobody will. This is literally the government of a huge country promoting ignorance, so it is very sad to see such a decision. They could at least pretended that they were concerned with stability or something, it would be less offensive.
Basically, the Mexican central bank is acting on its own interest by lying that the Mexican people are not capable of understanding the blockchain, which is actually not that hard at all. You do not need to be able to solve a Bitcoin equation in order to have some grasp of how Bitcoin works.
It is such a shame to see a bank take such a coward stance, so people in Mexico have to stand up against this frankly idiotic measure.
At the moment, the bank has opened a timeframe of 60 days for people to voice their opinions on the matter, so the Mexican people better show just how they understand the market, so that the bank will not destroy the local ecosystem to “protect people” when the only ignorant ones are the banks.