Mexican central bank governor: Bitcoin is commodity rather than currency

nnnIn the course of the University of Science and Technology, the Bank of Mexico’s central bank governor said that the encrypted currency, such as Bitcoin, had no government or central bank support, so it would not belong to the currency category and should be treated as a commodity. And Bitcoin involves cybercrime, so there is a risk in this form of financial innovation. And financial innovation should be in line with national supervision.n
nnTranslation: Annie_Xun
nThe top officials of the Bank of Mexico (Banco de Mexico) expressed confidence that the central bank could not divide Bitcoin into currency.n
nMexican local news El Economista reported that the bank governor Agustin Carstens said Bitcoin did not endorse the government or central bank, the encrypted currency does not meet the existing currency definition.n
nBitcoin should be seen as a commodity because “there is nothing to guarantee its reliability in the financial system.”n
nDue to the anonymity of Bitcoin and the involvement of cybercrime, Carstens calls for the treatment of Bitcoin as a “cyber security problem”, although financial innovation needs support and can not be at the expense of user safety.n
nThe central bank governor emphasized the role of government agencies in financial technology at the ITAM lecture at the University of Science and Technology in Mexico, saying that “technological development in the financial system is not just the result of innovation”, but must also be regulated by financial regulators.n
nHe said that the Mexican government agencies will soon propose legislative proposals to regulate financial technology, such as encrypted currency.n
nMexico’s financial regulation is the Ministry of Finance’s terms of reference, while the central bank is responsible for monetary policy and to ensure the operation of the financial system.n
n2014 CoinDesk reported that the Mexican central bank had shown that the digital currency is not the domestic legal currency, then also limit the use of bank currency.n

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