A recent announcement by one of the richest men in Mexico could have big implications for the cryptocurrency space. Ricardo Salinas Pliego isn’t just a multibillionaire whose corporation is involved in telecommunications, public services and more, but the country’s third-wealthiest man also behind one of the largest banks in Mexico. Jason Simon, an expert on FinTech and cryptocurrency, discusses why this is a big deal.
Mexican billionaire Ricardo Salinas Pliego backs the use of Bitcoin (BTC) and has said that his bank is on track to accept the cryptocurrency. “Of course, I recommend the use of Bitcoin, and my bank and I are working to be the first bank in Mexico to accept Bitcoin. If you need more details or information, follow me on my Twitter account,” he said on the social network. Saylor cited a video in which Mexico’s third wealthiest man and owner of Banco Azteca said cryptocurrency should be in the wallet of all investors and attacked fiat, calling them “fraud” and “stinky.”
While initially attracted to BTC as a means of exchange, Salinas is convinced that its potential lies in its store of value features. According to the billionaire, Bitcoin’s properties are especially attractive in Latin American economies, where fiat is being degraded and inflation is out of control. “What’s happening in Venezuela, in Argentina where fiat money is collapsing has become a scandal (…) It really opens your eyes to the problem of fiat cash,” he explained. Given that El Salvador has already made BTC legal tender and other countries in the region are reportedly following suit, a paradigm shift is underway that will lead to a different perspective on money.
Asserts Simon, “Salinas has reportedly invested 10% of his liquid portfolio into BTC. He has professed his enthusiasm for cryptocurrency on multiple occasions, and is apparently ready to take his support to a new level. Salinas has pointed out that BTC is the natural result of the evolution of money, from physical to digital, an idea supported by the largest cryptocurrency space, and this is going to lead to a transformation.” Given its advanced capability to provide banking solutions to the unbanked, of which over 50% of Latin America applies, BTC can solve a dire money access problem in the region.