Bank of Mex­ico says bitcoin not vir­tual cur­rency

Banking Frontiers - - News / Regulator -

Bank of Mex­ico does not clas­sify bitcoin as vir­tual cur­rency. The gov­er­nor of the cen­tral bank Agustin Carstens re­jected the clas­si­fi­ca­tion, ar­gu­ing the term ‘cur­rency’ com­prises an in­ap­pro­pri­ate clas­si­fi­ca­tion for bitcoin due to the cryp­tocur­rency’s ab­sence of cen­tral bank back­ing or is­suance. He said cryp­tocur­rency should fall un­der the gov­ern­men­tal do­main of cy­ber se­cu­rity, and not be viewed as a ‘vir­tual cur­rency’ by the na­tion’s reg­u­la­tors. Carstens stated that cryp­tocur­ren­cies are not nec­es­sar­ily im­mune to hack­ing, and ar­gued that bitcoin’s great­est util­ity is the fact that it of­fers users anonymity – be­fore warn­ing that bitcoin com­prises an at­trac­tive a mon­e­tary in­stru­ment to black mar­ket en­ti­ties.

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