CoinTelegraph spoke with Jose Rodriguez, the VP of payments at Bitso, a Mexican based Bitcoin exchange, payment processor and Ripple Gateway, on the country’s cryptocurrency prospects, and whether BBVA could be the most bitcoin-friendly bank.BBVA’s Innovation Center is not only one of the first to publish a cryptocurrency tutorial on YouTube, but was also part of the investors in the US$75m funding round for Coinbase in addition to hosting an Open Talent challenge where 10 of the 50 finalists are Bitcoin and Blockchain based startups, which included Bitso.Additionally, seven months ago BBVA Ventures’ Jay Rainemann said that they needed to better understand the industry and how merchants and consumers interact with bitcoin.This, along with the success of the First Latin American Forum on Virtual Currencies in the Financial and Regulatory Environment, the current trend is looking very bright for Bitcoin’s future.Bitcoin is certainly not a new thing for BBVA, since as early as April 2013 the bank has released online material describing what bitcoins are, how they have evolved and what risks are associated.

BBVA has also offered one of the conference rooms for the upcoming Mexican bitconf and have sponsored the second edition of the Digital Currency Summit in Madrid back on April 23.CT: What do you think about BBVA’s Bitcoin Friendliness?Jose Rodriguez: I love it, I’ve met them at events all over Mexico.bitcoin estateThey like it and they are really updated as to what we and their investments are doing.bitcoin ertragsrechnerI’m surprised at how friendly, open and interested they’re in this technology.bitcoin ensayoIt goes lengths to show this the amount of Bitcoin companies that are among the finalists.gbbg bitcoinThey even offered us the BBVA center at some new offices they’re about to open, to host this December’s bitconf.bitcoin gain calculator

“I’m surprised at how friendly, open and interested [BBVA is] in this technology.” CT: How long have you guys been around?JR: With Bitcoin almost three years as a speaker and investing, two years organizing meetups; and 3 months in Bitso after the acquisition of Unisend Mexico.We had already collaborated earlier with meetups, conferences and keynote talks.bitcoin flagAlso I invited them when I talked with Banco de México last year.CT: How do you see Mexico’s prospects regarding cryptocurrency?JR: We still need more developments, we’re not even 10 Bitcoin companies in Mexico.We have worked a lot promoting it on media, universities and conferences to accelerate its adoption.We have seen some results.JR: With Bitcoin and Ripple, we’re a Ripple gateway and have developed B2B solutions for international payments.Right now, several remittance, service payment and cross-border payment companies are using Bitso as a bridge towards the Mexican Peso.

This is where we see great potential and opportunities for growth.CT: Do you think Mexico has an innate advantage for Bitcoin adoption?You don’t have Argentine level inflation to help you.What’s the immediate advantage for some bitcoins over there?JR: No, here it would be more of a costs and efficiency thing.As a currency not so much, as a means or system yes.Except for last month where the peso has seen a great depreciation, it was stable so it wasn’t that much of a refuge.CT: Can you imagine a future where each bank issues their own coins?JR: Citi is trying to, and most of the bank's money is electronic, so it makes sense.Whether it is for listing financial products, to manage them or to have better internal control in banks such as Citi or BBVA that operate in several countries and have budgets they need to “dollarize.”Legal The European Union has passed no specific legislation relative to the status of the bitcoin as a currency, but has stated that VAT/GST is not applicable to the conversion between traditional (fiat) currency and bitcoin.

VAT/GST and other taxes (such as income tax) still apply to transactions made using bitcoins for goods and services.[1]:European Union In October 2015, the Court of Justice of the European Union ruled that "The exchange of traditional currencies for units of the ‘bitcoin’ virtual currency is exempt from VAT" and that "Member States must exempt, inter alia, transactions relating to ‘currency, bank notes and coins used as legal tender’", making bitcoin a currency as opposed to being a commodity.[2][3]According to judges, the tax shouldn’t be charged because bitcoins should be treated as a means of payment.[4]According to the European Central Bank, traditional financial sector regulation is not applicable to bitcoin because it does not involve traditional financial actors.[5]:5Others in the EU have stated, however, that existing rules can be extended to include bitcoin and bitcoin companies.[6]The European Central Bank classifies bitcoin as a convertible decentralized virtual currency.[5]:6

In July 2014 the European Banking Authority advised European banks not to deal in virtual currencies such as bitcoin until a regulatory regime was in place.[7]In 2016 the European Parliament's proposal to set up a taskforce to monitor virtual currencies to combat money laundering and terrorism, passed by 542 votes to 51, with 11 abstentions, has been sent to the European Commission for consideration.[8]The European Commission also notably presented a "parallel" proposal aimed at preventing tax evasion techniques as revealed in the Panama Papers.[9]In 2017 it was revealed that the proposal will require cryptocurrency exchanges and wallets to identify suspicious activity.[10]A Vancouver-based bitcoin exchange says its account has been shut down by the Bank of Montreal and claims the bank is closing all accounts owned by businesses who trade in bitcoins.In a statement on its website, Cointrader said BMO was the “last remaining bitcoin-friendly charter bank” in Canada and it’s disappointed by the move.

“Despite the fact that Cointrader has already implemented an anti-money laundering regime to comply with potential FINTRAC regulations which was vetted by BMO itself, the bank has decided to sever our account as well,” wrote Cointrader co-founder Paul Szczesny.A spokesman for the Bank of Montreal said Thursday he could not say whether only Cointrader's account was shut or if the bank is freezing all bitcoin business accounts because of a "privacy policy that precludes the bank from commenting on customer business."But the founder of the Bitcoin Alliance of Canada says he's skeptical about Cointrader's claim because he has heard from a number of bitcoin companies who say their accounts with BMO are still open."I'd like to see a statement or account from BMO, rather than just one company that had their account shut down," said Anthony Di Iorio.Most of Canada’s so-called Big Six banks have already frozen or shut down accounts owned by companies who trade the currency.The bitcoin company points out that the bank’s decision comes just after Finance Minister Jim Flaherty linked the cryptocurrency to criminal activities in last week’s budget speech.

“It is important to continually improve Canada’s regime to address emerging risks, including virtual currencies, such as bitcoin, that threaten Canada’s international leadership in the fight against money laundering and terrorist financing,” Flaherty said.Bitcoin transactions are largely anonymous because they are logged in a public ledger but are not tied to a bank account.Because of the anonymity, the currency has garnered attention from those who want to mask their activities and has left governments wary of potential criminal implications.Cointrader, which recently launched the world’s first bitcoin ATM in Vancouver, believes the Canadian government is attempting to “stifle the flourishing local bitcoin economy”.The company says it’s considering relocating its headquarters outside of Canada to “a more innovative jurisdiction where dubious fear-mongering does not pre-emptively close doors on the entrepreneurial spirit.” “If Canada continues its negative stance, and chooses not to help this thriving economy grow in accordance with the law, then we will be forced to relocate to more forward-thinking economies which are able to encourage innovation while also effectively deterring criminal behaviour,” Szczesny wrote in the blog post.

Bitcoin is the most popular of a spate of digital currencies that have been entering the financial realm as an alternative to cash or plastic, and which exist only in an online form.The unchartered digital currency is free from interference from any central banking authority, financial institution or middle man.The currency has been around since 2009, when it traded for fractions of a penny.It was thrust into headlines last year after $25 million worth of the virtual money was seized from the black market website Silk Road.Last month, Silk Road came back to haunt the community, when the CEO of a bitcoin exchange in the United States was arrested and charged with running an illegal scheme to sell $1 million in bitcoin to Silk Road users.Russian officials have also warned against using bitcoin because of its potential use in money laundering and terrorism financing, adding that treating it as an alternative currency is illegal.It has also set off alarm bells at the FBI.The Canadian government has been taking a wait-and-see approach to bitcoin, unlike Germany, which recognizes it as private money.