- Mexico’s upcoming election is set to be the largest in history, with over 100 million voters, yet cryptocurrency remains a peripheral issue.
- Claudia Sheinbaum, leading presidential candidate, aligns with current government stance on crypto, focusing on security and regulatory measures without major legislative changes.
Mexico is gearing up for a pivotal electoral event slated for June 2, 2024, marking what could be the largest democratic exercise in its history. An estimated 100 million voters are expected to determine the political fate of 628 national elected positions and thousands of local offices, including the presidency. Despite the massive scale of this election, the topic of cryptocurrency and blockchain technology seems to be sidelined in the broader political discourse.
The Stance of Leading Candidates
At the forefront of the presidential race is Claudia Sheinbaum, the former Mayor of Mexico City, nominated by the progressive Morena party. Sheinbaum’s position on cryptocurrency mirrors the current administration’s cautious approach. Under President Andres Manuel Lopez Obrador, who is ineligible for re-election due to constitutional term limits, the government has imposed a 20% tax on crypto gains. However, it has refrained from introducing comprehensive crypto-centric legislation. Instead, the focus has been on regulatory frameworks like the fintech law, which mandates that cryptocurrency exchanges comply with global standards for anti-money laundering and counter-terrorism financing.
Regulation Over Innovation
Sheinbaum and her party advocate for stringent regulation of blockchain technologies to enhance the security and integrity of the digital asset ecosystem. This approach aims to prevent the misuse of technology while maintaining a stable financial environment. It reflects a broader strategy of economic integration with the U.S., where Sheinbaum has expressed confidence in maintaining strong bilateral relations regardless of the American presidency’s political alignment.
While Sheinbaum remains the favorite to win, other candidates also recognize the potential of blockchain. Senator Xóchitl Gálvez from the Strength and Heart for Mexico coalition and former deputy Jorge Álvarez Máynez of the Citizen Movement party have both discussed leveraging blockchain technology to combat government and real estate corruption.
Despite these discussions, the overwhelming issues of cartel violence, corruption, and migration dominate the electoral agenda, pushing blockchain and cryptocurrency further to the periphery of urgent national concerns. This indicates that significant advancements in Mexico’s crypto policies may not materialize immediately, regardless of the election outcome.
In this electoral context, the future of cryptocurrency in Mexico hinges on the post-election landscape and how the new administration chooses to engage with this evolving technology. For now, the crypto community watches and waits, as the political winds will dictate the pace and direction of regulatory developments in this vibrant technology sector.