In Mexico’s Biggest Election Yet, Crypto Remains on the Sidelines

In the upcoming weeks, Mexico is prepared for its most significant election yet, involving approximately 100 million eligible voters. These citizens will collectively decide on 628 elected representatives, countless local offices, and the presidency. However, crypto-related matters are expected to take a backseat during this political campaign.

Which political figure or party is likely to assume leadership from President Andres Manuel Lopez Obrador after his constitutional term limit, ultimately shaping the course of crypto development in Mexico?

In a three-cornered contest for the presidency, Claudia Sheinbaum, the previous mayor of Mexico City and candidate for the Morena party, faces off against Senator Xóchitl Gálvez representing the Strength and Heart for Mexico alliance, as well as Jorge Álvarez Máynez, a former legislative deputy from the Citizen Movement party.

Based on the latest polling data, Sheinbaum is currently leading the presidential race, followed by Gálvez and Máynez who trail behind as the second and third contenders.

Sheinbaum expressed her belief that the economic connection between the U.S. and Mexico is strong enough that she would be able to maintain positive relationships with either a Donald Trump or Joe Biden presidency, should she come to power. Mexico serves as the biggest recipient of remittances from the United States. However, her party’s administration has kept cryptocurrencies at an arm’s length in financial integration, imposing a 20% tax on crypto profits. Yet, there is no comprehensive legislation regarding crypto. A fintech law and other regulations mandate that cryptocurrency exchanges in Mexico must register under international anti-money laundering and terror financing guidelines.

The party led by Sheinbaum is advocating for stricter regulations on blockchain to enhance its security.

If any of the other candidates were to win the election in Mexico, it’s uncertain that crypto would be a top priority. The country has experienced numerous candidate murders during the election period, highlighting that cartel violence is a major concern alongside corruption and migration.

Pavel Salas stated that Gálvez and Álvarez Máynez’s political group have independently promoted the use of blockchain technology as a tool for combating corruption in both the public and real estate sectors.