TL;DR
- Mexico’s central bank will keep a “healthy distance” between crypto assets and its traditional financial system.
- It warns that expanding stablecoins may create significant liquidity and financial contagion risks.
- This cautious stance contrasts with new regulatory frameworks emerging in the U.S. and European Union.
The Bank of Mexico stated in a report released Wednesday that it will maintain a “healthy distance” between digital assets and the country’s traditional financial system. The institution is monitoring the crypto market for risks that could undermine financial stability, signaling no intention to loosen its stance even as other governments advance new regulatory frameworks.
The report highlights that the expansion of stablecoins and their growing links with conventional financial services may create vulnerabilities tied to liquidity, contagion, and regulatory arbitrage. The position contrasts with recent measures introduced abroad, including the Genius Act in the United States and the European Union’s MiCA framework, which aim to manage risks while enabling broader use of stablecoins for cross-border payments.
The announcement comes as Mexican fintech firms such as Bitso increase the use of blockchain rails for remittances and international transfers. Banxico noted that it will keep monitoring the adoption of digital tools as they gain traction in everyday payment activity.
The IMF also issued warnings in October, citing risks to lending markets, monetary policy and traditionally safe assets as stablecoins expand.
