Bank of Mexico Considers Virtual Currencies Illegal

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Bank of Mexico Considers Virtual Currencies Illegal

The central bank recently released a statement to mention its strict grounds against the virtual currencies.

ForexMinute.com – Days after Japanese finance regulators readying to accept Bitcoin as a commodity, Bank of Mexico (BoM) has warned public of the risks involved with using such virtual currencies. The bank particularly highlighted Bitcoin and Litecoin to be inherently dangerous to their well-structured financial system.

BoM simply warned public that no specific regulatory body in Mexico is issuing or backing these digital currencies. “They do not have a relative penetration rate,” the bank said in a statement. “Public should be aware that these digital currencies are not legal. Their function as a means of payment is not guaranteed and businesses and other people are not obligated to accept them.”

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The bank also made it clear that they are not planning to authorize virtual currencies, and has definitely no thoughts for engaging in its transactions by any means. “In other jurisdictions, their use in illicit transactions, including those related to fraud and money laundering, has been identified,” the central bank said, while explaining the reasons of their strict stand against virtual currencies.

The recent meltdown of Mt. Gox has initiated a negative influx regarding the vulnerability of digital currencies. With Bitcoin’s value dropping over 60-percent within just two months, governments and people are beginning to understand the volatility such currencies possess. Amidst such times, Japan has given Mt. Gox bankruptcy protection, while a court in Texas, US has also agreed to protect the firm’s assets.

Mexico however is trying to avoid any risk with its financial system and investors. The central bank’s take on digital currencies unswervingly signifies how much they are serious about grasping them out of its public’s fantasies.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com