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Latin America’s Cryptocurrency Use Is Still On The Rise

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Despite the instability surrounding the global financial markets, the degree of bitcoin acceptance in Latin America continues to rise. Countries in the area are proposing legislation to encourage the use of cryptocurrencies.

El Salvador was the first country in Latin America to accept cryptocurrencies. El Salvador legalized the use of Bitcoin as legal money in September. The World Bank and the International Monetary Fund criticized the adoption due to the highly volatile nature of cryptocurrencies.

Other nations in the area, including Argentina, Brazil, Panama, Paraguay, and Mexico, are now following suit with a welcoming crypto legal environment. These countries have become more accepting of cryptocurrencies as a form of inflation protection.

Mexico hinted this week towards the acceptance of Bitcoin as official money. Indira Kempis, a Mexican senator, indicated that she would draft legislation comparable to El Salvador’s Bitcoin law. Kempis is a pro-crypto politician in Mexico, and she has been an enthusiast for the industry since she gained office in 2018.

There is no guarantee that this bill will pass because no other senators have come out in support or against. However, Mexico’s president, Andres Manuel Lopez Obrador, previously stated that Mexico would not follow El Salvador in accepting Bitcoin as legal cash.

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Other Mexican leaders support cryptocurrency adoption as well. Last year, Mexican Congressman Eduardo Murat Hinojosa of the lower house tweeted that he would support and propose a legislative framework for cryptocurrency. There is also no guarantee that this will be achievable.

However, the two politicians have sparked debate about the significance of Bitcoin in Mexico’s economy. While it is unlikely to be approved as legal cash, Mexico could develop a regulatory framework for the sector.

Adoption of crypto assets is increasing in Mexico, and Coinbase has enabled users to easily transfer their crypto assets into Mexican pesos. The introduction of this feature gives light on the rapid growth of cryptocurrency acceptance in Mexico.