The value of bitcoin surged when billionaire Ricardo Salinas Pliego said that his bank was striving to become the first in Mexico to accept the cryptocurrency.
Over the weekend, Mr. Salinas Pliego tweeted that he encourages the usage of Bitcoin.
On the other hand, Mexican financial officials declared on Monday that digital currencies are not legal tender in Mexico and are not recognized currencies under current rules, threatening financial institutions that deal with them with fines.
The Bank of Mexico, the Finance Ministry, and the Banking Commission issued this statement after Mexican billionaire Ricardo Salinas Pliego stated on Sunday that his banking company, Banco Azteca, may start accepting bitcoin making it the country’s first bank to do so.
According to the statement, cryptocurrency is a volatile and speculative commodity that, while it may be traded, does not serve the same purpose as money “since its acceptance as a form of payment is restricted and they are not a reliable reserve or value reference.”
The crypto market began to settle down after weeks of losses, and this news may not be a piece of good news for Bitcoin in the short run.