Bank of Mexico maintains distance from the fusion between cryptocurrencies and traditional finance

Source: CritpoTendencia Original Title: Bank of Mexico Maintains a “Healthy Distance” from Cryptocurrency and Traditional Finance Fusion Original Link: The crypto sector is advancing strongly toward increasing integration with the global financial system. However, authorities at the Bank of Mexico maintain a clear stance: they do not wish to be part of that process for now. Recently, the central bank reiterated that it prefers to maintain a “healthy distance” between cryptocurrencies and traditional finance.

In a report published this Wednesday, the organization emphasized that it continues to monitor risks that could arise from the crypto ecosystem. It highlights that the digital asset market incorporates elements capable of affecting financial stability, which requires constant supervision.

The document clarifies that the country has no immediate reasons to soften its stance on cryptocurrencies, even in light of regulatory and integration advances adopted by major economies like the United States. In 2025, the US government officially recognized crypto assets as part of its financial system and facilitated institutional trading with these assets.

This process included enabling banks and institutions to operate with crypto assets, as well as issuing an executive order to create a strategic Bitcoin reserve. Nonetheless, the Mexican central bank maintains its restrictive approach. For the institution, cryptocurrencies and traditional finance should not converge without thorough prior analysis.

The Risks of Cryptocurrencies for Mexican Finance

According to the Bank of Mexico’s approach, crypto assets pose significant risks to the financial system in all its forms. Even stablecoins, despite being backed 1:1 by traditional assets, are seen as potentially dangerous to financial stability.

“Its expansion and increasing interconnectedness with the traditional financial system could generate vulnerabilities related to liquidity, contagion, and regulatory arbitrage,” warns the report. However, despite this strict stance, the use of digital assets continues to expand within the country.

Cryptocurrency adoption and blockchain-based solutions are growing rapidly in Mexico, as in much of Latin America. Both holding and direct trading show benefits for individuals and businesses. Additionally, the country has active fintechs in various areas of the crypto sector, indicating sustained demand.

This dynamic suggests that the central bank’s stance could be pressured to evolve. Refusing to allow stablecoins linked to the Mexican peso might encourage users to adopt stablecoins based on foreign currencies, especially the US dollar.

The Expansion of Cryptos in Mexico

Despite the conservative approach of the Bank of Mexico, the crypto ecosystem continues to strengthen in the country. According to late 2024 data, around 3.1 million people trade or store cryptocurrencies, a figure that likely increased during the 2025 crypto boom.

Stablecoins play a fundamental role in this expansion, even without a comprehensive regulatory framework. Peso-linked projects, such as MMXN and MXNe, show notable growth in adoption and use.

The main risk of private stablecoins is the possibility of a run in case of a crisis. This could trigger issuer bankruptcies due to massive redemption requests. For the Mexican economy, such a scenario could cause liquidity problems, especially if the circulation of stablecoins exceeds the immediate availability of pesos in the financial system.