Bank of Mexico Restricts Banks from Bitcoin Use Dan Palmer - CoinDesk
go to original March 22, 2014

Following a number of statements by other central banks regarding the dangers of digital currencies, the Bank of Mexico has issued its first statement on the issue.

The bank warned the public via a statement on its website about the “the inherent risks of acquiring these assets and using them as substitutes for conventional methods of payment”, though most notable were potential restrictions for domestic financial institutions, reports say.

Translations of the statements suggest that financial institutions regulated in Mexico “are not authorized to use or carry out any operations with [digital currencies]“.

Specifically mentioning bitcoin and litecoin, digital currencies, the bank said, “are not legal tender currency in Mexico, since the Bank of Mexico does not issue nor back them”. Furthermore, “their use as a form of payment is not guaranteed, since businesses and anyone else are not required to accept them”.

Like other central bank warnings, the bank felt it necessary to warn users of the perceived links between digital currencies and crime, saying, “In other jurisdictions, they have been allegedly used in illicit operations, including fraud and money laundering”.

Read the rest at CoinDesk

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