Mexico Warns Citizens About Cryptos Amid Pandemic

The director of the Center for Business Research and Development (CIDE) in Mexico wants the citizens of the city of Aguascalientes to be cautious of investing money into cryptocurrency trading during the crisis caused by the novel Coronavirus.

On May 4th, Alberto Aldape BARRIOS, the director of CIDE, issued a statement warning the citizens from hastily investing in the Bitcoin, Forex, futures, and options. In the statement to local newspaper El Heraldo, Barrios stated that the system is run by “professional financial speculators” and the crisis has brought huge instability in the market of cryptocurrency. Alberto Aldape has stated:

“With cryptocurrencies, you cannot speculate because you can lose all your money in one day. No institution backs that currency.”

Barrios specified that even though the cryptocurrencies have been adopted in other countries it is still a risky investment and that “it’s a market for professional speculators.”

CIDE also reminded citizens under lock-down to be cautious with the companies offering investments in Futures, options, Forex, and cryptocurrencies. The director of CIDE stated that the fall of the price of oil was a good example of how risky this investment is. Barrios warns that Mexican citizens should not trust social media advertising about making a lot of money in a short time.

These announcements have come out due to the fact that cryptocurrencies are spiking in popularity in Mexico. Cointelegraph Espanol has made a report on May 4th, which stated that adoption of cryptocurrency has increased all over Mexico since 2018.

Image courtesy of Newsweek Espanol