Mexico will give its central bank the ability to supervise cryptocurrencies. A translation of some of the bill:
“[Financial technology firms] can only operate with virtual assets that are determined by the Bank of Mexico through general provisions. To carry out operations with such virtual assets, they must have the prior authorization of the Bank of Mexico.”
President Enrique Pena Nieto says the fintech legislation will begin on September 20. There are no voices raised in opposition to the bill it seems, but there should be. Cryptocurrencies are a way to use currency that has nothing to do with a central bank.
To put a central bank in charge of a currency is to ensure sooner or later that the currency will come under attack from the central bank. That’s because central bank currencies and crypto currencies cannot exist together in the long term.
Either cryptocurrencies or central bank currencies will have to change. More likely neither will change and the upshot will be a significant fight.