El Salvador’s struggle in the use of crypto at the national level has indirectly inspired many countries especially in Central America to follow in its footsteps. Most recently, Indira Kempis, a Mexican Senator, has said that Mexico needs Bitcoin to be a ‘legal tender’. The senator is currently drafting a cryptocurrency bill based on El Salvador’s Bitcoin law.
Kempis expressed his confidence in the use of Bitcoin in an interview conducted during his visit to El Salvador. Kempis said that he has observed that Bitcoin brings monetary gains to the citizens of El-Salvador.
Mexican senators argue that El Salvador is rapidly changing the narrative around it. Where previously El Salvador was often associated with the issue of terrorism, and organized crime, El Salvador is now the focus of discussion on the use of global crypto.
He urged his country, Mexico to emulate El Salvador in the use of Bitcoin. In Kempis’s view, adopting Bitcoin as a legitimate tender has the potential to create an equal playing field for everyone around the world.
In addition, he also noted that the result of the use of Bitcoin, El Salvador's GDP and tourism sector have increased rapidly. Thus he thinks that Mexico could potentially reap many benefits from adopting Bitcoin as a legitimate tender. According to a study by the Association of Banks of Mexico (ABM), there are clear cases of widespread financial bias in Mexico. About 53% of adults in the country do not have a bank account. Similarly, 7 out of 10 residents of the country do not have access to credit, the study found.
ABM noted that the problem is exacerbated by the fact that residents have distrust of financial products and services. Bitcoin, as a decentralized solution, could help bridge this gap as is the case in El Salvador. Meanwhile, Mexico has plans to issue a CBDC by 2024 to bring in more financial inclusion.
