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Can I pay with bitcoin in Mexico

Mexico implemented a law in 2018 in which the digital assets were discripted and power was given to the Mexican Central Bank to oversee companies and transactions involving digital assets such as bitcoin, or other crypto. But what does that mean for you as a visitor? 

Mexico knows only a few crypto ATM’s scattered over the country, and there are a lot of complaints about them malfunctioning. And tehre are more or less 100 companies that will accept bitcoin for payment, mainly by using Bitso Trasfer. Among those few companies are hospitals end private health clinics, some hotels and restaurants, and a food truck chain that can be found in the border region with the USA.

Regulations according the in 2018 implemented law for money laundering and digital assets are strict. And with the freedom it gave to the Mexican National Bank, financial companies have to get approval of the Central Bank before they can offer digital asset services such as exchange wallets, apps and ATM for example.

Every company that has permission to offer crypto services must have a few informative warnings on their website or in the app before you sign on, these include the warning that the Mexican Federal Government does not acknowledge or accept digital assets such as crypto as legal assets and do not back the currency. That the currency is exempt from bank-guarantees regarding fraud and collapse. That trading and owning digital assets involves risk of value loss, fraude and money laundry practices that are forbidden by law.

Every financial company that has permission to use digital assets as a currency has the obligations to report transactions to the Mexican Central Bank.

The Mexican Central bank has the liberty to specify, adjust, monitor and limit the digital asset within the boundaries of the Federal law.

All (your) transactions that flow directly out of your crypto wallet to your Mexican bank account and vice versa will be reported to the Central Bank of Mexico.

This means you probably cannot buy a house using crypto, for it will be very difficult for your broker to proof the whereabouts of the money for the sale of the house within the Mexican financial system. And  you are certainly not allowed to proof financial solvency for your resident permit in crypto and you will not be able to pay governmental fees through crypto currencies anytime soon.