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Using Blockchain in Mexico vs. corruption. The proposal of a Mexican legislator
As we already told you in our article on cryptocurrency predictions, 2023 could be the year of regulation and government use of Blockchain technology. What is happening in LATAM? Although this process is taking longer than it should, more and more lawmakers around the world believe that the new digital economy is here to stay and that it can be adapted to government functions.
For example, one legislator has just proposed before the Chamber of Deputies the use of Blockchain technology in Mexico for the benefit of the population. Andrés Pintos Caballero, representative of the MC, believes that the use of blockchain would put an end to much of the corruption that exists in the country.
The use of Blockchain in Mexico: an alternative against corruption
Andrés Pintos Caballero, Representative of Movimiento Ciudadano (MC) has proposed the use of Blockchain technology in Mexico to improve the administrative functions of local governments. In a session with representatives of the 32 States of the Mexican Republic, the legislator mentioned that the Blockchain will serve to make transparency processes more efficient and, therefore, improve the fight against corruption.
According to the numbers published by the Gazette of the Chamber of Representative, the problems generated by corruption in State Governments cost an average of 9,500 million pesos, so the use of digital tools would help to reduce, punish and prevent these bad practices.
The document delivered by Congressman Pintos mentions that Blockchain technology in Mexico allows solving political-social problems within most areas of government. This is because its implementation would favor all the public policy in charge of the fight against corruption.
In addition, the legislator mentions that the implementation of Blockchain in Mexico would be a method of control for all public servants, since this would avoid falling into illicit practices, ensuring the transparency of functions at all levels of government.
It is expected that Andres Pintos will present this initiative for discussion during the first half of this year, so we can say that the adoption of Blockchain in Mexico is getting closer and closer.
Mexico also prepares for Bitcoin regulation
In addition to the use of Blockchain in Mexico to fight corruption, the country is preparing for the regulation of Bitcoin, the world's most popular cryptocurrency. In February 2022, Senator Indira Kempis presented an initiative proposing that Bitcoin be legal tender in Mexico, calling for its inclusion within the global financial world.
Inspired by the historic Bitcoin Law in El Salvador, the Senator mentioned that we are facing a historic opportunity to welcome the new digital economy in Mexico. In addition, the legislator commented that Bitcoin legislation was necessary in order to level the market conditions in Latin American countries.
Then, in April 2022, the President of the Senate, Ricardo Monreal and Senator Miguel Angel Mancera presented the forum 'Bitcoin: Mexico facing the Future', a meeting where emphasis was placed on the regulation of digital currencies, in order to increase the security of Mexicans who want to venture into the new financial world, as well as the protection of companies that want to offer digital crypto services in the country and want to work safely in Mexico, such as TruBit.
After the meeting, the first Bitcoin ATM was installed inside the Senate of the Republic, and the organizers promised to continue presenting initiatives to regulate cryptocurrencies during 2023, so we could be living a key year for the market and the Blockchain in Mexico.
The use of Blockchain in Mexico vs. corruption joins an increasingly common trend in Latin America around the regulation of digital assets. For example, Colombia's House of Representatives is currently debating its own bill to regulate the cryptocurrency exchanges that are operating in that country.
Another example is Brazil, where the bill to legalize the use of Bitcoin and other cryptocurrencies as a form of payment is about to come into force. For its part, Argentina is initiating 2 new projects that will allow regulating the crypto system entirely, although here there are no significant advances.
And of course, the MiCa Law (Markets in Crypto Assets), which, if nothing extraordinary happens, will come into force at the end of 2023 in the European Union. This is one of the first pieces of legislation that will protect users from market manipulation, and it will also try to put an end to anonymity in cryptoasset transfers.
Conclusions
2022 was a year of crisis for the world of cryptoassets. Luna and the FTX case caused cryptocurrency exchanges and companies dedicated to the new digital economy to lose the trust of their clients, so now more than ever a regulatory framework must be implemented for society to increasingly increase the use of cryptocurrencies in their professional and personal lives.
Mexico has begun to take steps towards the era of regulation, although for now it has remained only in conversations and proposals from legislators.The hope? Blockchain implementation in Mexico may happen following the example of LATAM countries, such as Colombia, Brazil or even Argentina.
This process can become very complex because each country has different use cases, different market risks and totally different histories with crypto. Once these paradigms are eliminated, we could say that Mexico is ready for regulation.
