The recent favorable positions on the regulation of cryptocurrencies in the United States (US) and the increasing possibility of the creation of a state investment fund, could generate a positive effect on Mexican regulation, according to a specialist from the Tecnológico de Monterrey.
According to Ángel Iván Olvera-Lozano, academic and professor at the Tecnológico de Monterrey, the growing support of legislators and financial organizations in the US towards the crypto industry could lead the authorities to take more open positions for the adoption of digital assets in the country.
“Due to the profile of those who will make decisions in the Trump government, it is inferred that it will be a more aggressive administration than expected in terms of favorable policies for crypto. This could drive changes in the Mexican government, if at some point it were considered to invest federal resources in cryptocurrencies, a different position than the conservative one and with less aversion to risk could be expected,” Olvera-Lozano mentioned.
As a precedent, the president of the United States, Donald Trump, proposed the creation of a sovereign fund that could include bitcoin, the cryptocurrency with the highest market capitalization, as part of its reserves. If implemented, this initiative would set a precedent, since no sovereign fund has officially incorporated the bitcoin cryptocurrency into its investment plans.
However, the regulation of digital assets in Mexico remains a topic of debate.
Currently, the position of the Bank of Mexico (Banxico) focuses on promoting a healthy distance between virtual assets and the traditional financial system, according to its latest Financial Stability Report.
Take care of your cryptocurrencies and protect your wallet from cybercriminals
Mexico slightly increased its relative position in the world ranking, moving from 16th place in 2023 to 14th place, according to Chainalysis’ global cryptocurrency adoption index.
“In the case of the United States, the debate is not necessarily focused on the regulation of cryptocurrencies, but on how the government can invest in them. This includes the possibility of allocating federal funds and even allowing local governments to make investments in cryptoassets,” Olvera-Lozano mentioned.
In addition, the inclusion of the cryptocurrency in a state fund would not only give greater legitimacy to the virtual asset, but could also boost its adoption globally and reduce speculation on the asset, as mentioned by Olvera-Lozano.
“Governments, by not adopting a speculative position by nature, do not seek to sell at the highest point of the cryptocurrency price. What does this imply? For investors, this can be beneficial, as it provides greater certainty about the resources involved and contributes to reducing, to a certain extent, volatility. The presence of federal resources invested in this market provides a greater degree of stability and confidence,” the academic highlighted.
Source: eleconomista
