The Bank of Mexico’s stability report identifies liquidity, contagion, and regulatory-arbitrage risks associated with stablecoins. The central bank expressed concerns about their rapid growth and strong ties to traditional finance, which could magnify market stresses.
The divergence in regulatory frameworks worldwide could lead to arbitrage opportunities, destabilizing the market. Despite the warnings, Mexico’s crypto adoption lags behind other Latin American nations like Brazil and Argentina, which are developing more comprehensive regulatory frameworks.
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