Home Economy New cryptocurrency “MMXN” backed by the Mexican peso

New cryptocurrency “MMXN” backed by the Mexican peso

Alejandro Díaz de León explains that all the central banks of the world are doing an in-depth review on how to best provide digital currencies

After the launch of the MMXN cryptocurrency, linked to the Mexican peso, the Bank of Mexico (Banxico) reiterated its position to disassociate itself from any type of virtual assets. Moneta digital announced that from tomorrow it will make available to users in Latin America, through its platform, the new cryptocurrency with an initial amount of one thousand pesos.

In view of this, Banxico Governor Alejandro Diaz de Leon mentioned that there must be a healthy distance between this type of digital currency and financial institutions

“Crypto-crypto assets are in their territory, in their space, we feel that we must be very careful of that healthy distance between the two to avoid confusion in the face of the consumer,” he warned. During the presentation of the Financial Stability Report, he recalled that financial institutions are not allowed, for example, to finance leveraged or crypto-asset positions, receive them as collateral or offer them directly in portfolios.

“In terms of crypto assets, there is a wide range of these modalities, we have been very clear in our regulation when talking about a healthy distance between crypto assets and the financial system,” he
emphasized.

He said that not only Banxico, but all central banks in the world, are doing a very deep review about how to best provide digital currencies.

However, the Bank of Mexico was very clear and forceful in pointing out that the agency does not support any cryptocurrency nor is it allowed to finance “leveraged” positions

Moneta Digital,an international technology company, announced the launch of the MMXN,” the only and exclusive stablecoin-type cryptocurrency backed by Mexican pesos,” they reported in a press release Thursday.

The company said that this makes it the first stablecoin linked in one-to-one proportion with the Mexican Peso available for use in the global digital asset market, opening the door for Mexican users, as well as global users of the Mexican peso, to use this digital instrument.

They added that its use “will facilitate all kinds of transactions, such as acting as an intermediary between fiat currencies and digital assets, sending and receiving remittances without borders, and other types of payments.”

“We are very proud to announce that the first Mexican stablecoin is now operational. The high growth numbers of the cryptocurrency market in the Latin American region support this great confidence in turning the MMXN into a great exchange asset in the crypto ecosystem,” said José Enrique Guadiana, Vice President of Communication of Moneta Digital in Mexico.

The Mexican central bank strongly rejected its support for any type of cryptocurrency

“Today is a special day for Mexican users, as well as for users in Latin America and the world, as we are transforming the Mexican financial landscape as we know it,” guadiana concluded.

MMXN, they detailed, is completely transparent through blockchain technology. “This will help millions of Mexicans solve the need to use fiat currency in the purchase and sale of various types of cryptocurrencies,” they added.

“Deposits of both fiat currency and stablecoins are held in an authorized and regulated reserve, which is also certified by one of the most reputable accounting firms globally,” according to Moneta Digital.

According to the company’s statement, MMXN is a stablecoin for the Mexican market that bridges the gap between fiat currency and the crypto ecosystem. It is “designed and developed so that users intuitively understand the relationship between the MMXN and the Currency of Mexico, as well as keep a stable value in cryptocurrency and have the opportunity to acquire additional assets”.

The creators boasted that it is the first Mexican stablecoin that is already operational

“However, 90% of stablecoins are currently pegged to the US dollar, which makes it difficult for Latin American users to acquire them with their national currencies. MMXN is that strong and reliable bridge between pesos and cryptocurrencies in the growing Mexican crypto ecosystem, because Mexico’s currency is the number one traded in the area,” they said.

The benefits listed by Moneta Digital for the MMXN are related to keeping stable value linked to the Mexican peso; a “high security thanks to audited smart contracts on the ERC-20 and TRC-20 blockchains”; reserves linked to the weight, completely reviewed and transparent; bridge between fiat currency and cryptocurrencies; very fast and low-cost transaction methods; and sending and receiving payments and remittances without borders.

And it is that the first quarter of 2021 saw a boom in the size of the cryptocurrency market worldwide. According to data from CoinMarketCap, the capitalization of all cryptocurrencies reached in the month of May the figure of $ 2.3 billion dollars.

Cryptocurrency fever arrived in Mexico with MMXN

“This accelerated growth led a large volume of mainstream users to enter the crypto ecosystem, which opens a great window of opportunity for the introduction of the MMXN”, they assured from Moneta Digital.

However, it is important to remember that just this Wednesday the Bank of Mexico (Banxico) announced its position on cryptocurrencies. The Governor of the Mexican central bank, Alejandro Diaz de Leon, pointed out that the agency he heads does not support any cryptocurrency nor is it allowed to finance leveraged positions.

“We have been very clear in our regulation in talking about a healthy distance between crypto-assets and the financial system. It should be noted that cryptoassets are in their space, in their territory and we have to be careful of that healthy distance to avoid confusion in the face of the consumer”, explained Díaz de León through a press conference where the “Financial Stability Report 2021” was exposed.

Mexico Daily Post

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