Mexico is preparing for its biggest election, with 100 million voters choosing 628 officials, including the President. However, even though it is an important issue worldwide, crypto is not a central topic during this election campaign.
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The fate of crypto in Mexico depends on what the next president and their party think about it. According to the polls, the former mayor of Mexico City, Claudia Sheinbaumre is the favorite to win and represents the ruling left-wing Morena party. Even though Mexicans are becoming more interested in cryptocurrencies, especially bitcoin, the top candidate is not focusing on cryptocurrency. Following Sheinbaum in a distant second is Senator Xóchitl Gálvez who represents the Part of the Strength and Heart for Mexico coalition. Then coming in third in the polls is Jorge Álvarez Máynez, a former legislative deputy from the Citizen Movement party. Both candidates, like Sheinbaumre, are also not talking about crypto either.
The Importance of US-Mexico Relations
In Mexican elections, how candidates handle the relationship between Mexico and the United States is crucial. Voters pay close attention to how candidates address these ties, as it reflects Mexico’s interactions with its neighboring country to the north. Many Mexican families reside in the United States and frequently send money back to their relatives in Mexico. As a result, Mexico receives more remittances from the U.S. than any other nation. These financial transfers are crucial in supporting families and communities in Mexico. In 2021, Mexico got a staggering $51.6 in remittances, with 94.9% coming from the United States.
In addition, the two countries have robust trade relationships, like selling goods and services back and forth. In 2022, the United States and Mexico traded $324.3 billion which shows the importance of strong relations between the two nations. Claudia Sheinbaum promises to maintain a good relationship with the winner of the U.S. Presidential election in November, be it Joe Biden or Donald Trump. She understands how crucial it is for Mexico’s economy to maintain strong connections, particularly when it comes to trade and immigration.
The Future of Crypto
The future of crypto will be determined by which party and presidential candidate takes over from President Andres Manuel Lopez Obrador, who cannot run again under the constitution. Sheinbaum’s party government has left digital currency on the outskirts of financial integration so far and has imposed a 20% tax on crypto profits, but there are no detailed rules yet. Currently, there’s a law about financial technology (called fintech) that says crypto exchanges in the country must follow global standards to stop money laundering and terrorism financing. The government has been taking steps to regulate blockchain technology, aiming to improve its safety and security across the entire system.
Although it’s unlikely that another contender will come into power, if that did happen, crypto may still not be a priority. In Mexico, the pressing concern is the political violence stemming from drug cartels. Both Gálvez and Álvarez Máynez aim to tackle corruption and migration head-on. They suggested using blockchain technology to fight corruption within the government and real estate sector. Though cryptocurrency isn’t a major focus in this election, it’s gaining attention. More Mexicans are getting into online gambling, like crypto poker and slot machines. Mexico’s iGaming industry is booming and expected to reach $500 million in gross gaming revenue.
