Freshman Mexican Senator Indira Kempis, known for her previous bill advocating the creation of a central bank digital currency (CBDC), has now set her sights on incorporating Bitcoin into her political agenda.
Hailing from the state of Nuevo León, situated north of Mexico City and sharing a border with Texas, Kempis initially encountered Bitcoin without fully grasping its intricacies. However, her perspective shifted when she learned about the challenges faced by entrepreneurs in the field. She played a crucial role in the development of Bitso, now the largest cryptocurrency exchange in Mexico, prompting her to initiate discussions within the legislative branch.
Kempis initially introduced a bill that didn’t mention Bitcoin or decentralized assets. This pragmatic approach aimed to establish the essential legal framework for recognizing and accepting Bitcoin as legal tender in Mexico. The bill originally proposed the central bank, Banco de México, as the sole issuer of digital currency. Despite facing backlash from the crypto community, Kempis believed it was a necessary step to initiate the discussion. Consequently, she revised the proposal to include Bitcoin.
The journey has been challenging, according to Kempis, who noted that the installation of a Bitcoin ATM in the Mexican Senate has piqued the interest of fellow members of the Mexican Congress and their teams. Initially, there was little opposition to her bill because few understood Bitcoin. However, it is now receiving both positive and negative attention. Kempis remains undeterred by critics, viewing their objections as signs of progress within the system.
Kempis aims to gauge the support of Mexican legislators regarding the bill and hopes to communicate their positions to the public, seeking clear stances on this innovative concept.
Mexico is renowned for its thriving tech sector, progressive fintech regulations, and tech-savvy populace. A recent Chainalysis report suggests that Mexico’s adoption of cryptocurrency products surpasses the regional average for centralized exchanges, indicating a diverse crypto ecosystem.
Additionally, Senator Kempis highlighted that digital wallets are now available in indigenous languages, serving 6% of the population. Remittances have also seen a significant increase, with a nearly 10% year-on-year growth.
Although the bill is under discussion, it has a long road ahead. The Mexican Central Bank, while maintaining autonomy, is a significant part of the legislative process, and the Mexican Senate has requested a formal analysis and stance from the institution, which is pending.
Kempis noted that the former head of the central bank was a vocal Bitcoin critic, but the current governor, Victoria Rodríguez, has largely remained silent in Bitcoin-related discussions. Some politicians, such as Andrés Manuel López Obrador (AMLO), have expressed reluctance to adopt Bitcoin as legal tender, in contrast to El Salvador’s pioneering Bitcoin law.
Kempis anticipates the introduction of the digital peso by the financial institution in 2024. She has announced her candidacy for the 2024 presidential elections and intends to continue her advocacy for Bitcoin, emphasizing the legislative branch’s role in promoting education and advancing discussions through well-considered legislation and regulations. She remains hopeful, stating, “If El Salvador could do it, surely we can as well.”