Mexico’s central bank digital currency (CBDC) development is still in an initial phase, and it is unlikely to be ready for launch by 2024.
Mexico’s proposed central bank digital currency (CBDC), which was first revealed more than a year ago, is still in the planning stages and is not likely to arrive in 2024 as scheduled.
Banxico, the name of Mexico’s central bank, is reportedly working on the technological, administrative, and regulatory criteria for the digital peso. The local government declared its intention to launch a national digital currency in December 2021 and said in a tweet that “new technologies and next-generation payment infrastructure” will increase financial inclusion in Mexico.
While that tweet indicated a 2024 launch, a year later, officials are refraining from making a launch date prediction. The central bank said:
“The result of this initial phase entails the preparation of a budget that is currently being determined, and will in turn allow establishing a probable date on which the MDBC [CDBC] will be available,”
The PagoCel platform, which enables users to make bank transfers using their cell numbers or personal information, was created as part of the original plan’s initial stage.
The country’s financial institutions would be involved in a second phase, where they would provide a security code for digital currencies to be transmitted through the Interbank Electronic Payment System (SPEI), a transfer system that is run and owned by the Central Bank.
The project’s ultimate phase would let individuals who don’t have bank accounts use the virtual money, encouraging their financial inclusion.
According to Triple A’s research on cryptocurrency ownership, Mexico’s interest in cryptocurrencies increased in 2021, when 40% of the nation’s businesses expressed interest in implementing blockchain and cryptocurrencies.
With the backing of many lawmakers and crypto aficionados, a Bitcoin ATM has been installed in Mexico’s Senate building as a result of the country’s growing interest in cryptocurrencies. According to data from the World Bank, Mexico is the second-largest recipient of remittances in the world, with transfers hitting a record $5.3 billion
