The development of Mexico’s central bank digital currency (CBDC) is still in an early phase, and it is unlikely to be ready for launch in 2024.
According to local media reports, the central bank of Mexico, known as Banxico, is currently working on the legal, administrative and technological requirements for the digital version of the peso. The first of three stages in the proposed release schedule.
In December 2021, the local government announced its plan to introduce a national digital currency, noting in a Twitter post that “new technologies and next-generation payments infrastructure” would enhance Mexico’s financial inclusion and projecting the launch for 2024. A year later, the authorities would have avoided forecasting a release date.
“The result of this initial phase implies the elaboration of a budget that is in the process of being determined, and will in turn make it possible to establish a probable date on which the MDBC [CDBC] will be available,” Mexico’s central bank said.
The original plan included in a first stage the creation of the PagoCel platform, which will allow users to make bank transfers using their cell phone numbers or personal information. A second phase will involve the country’s financial institutions, who will issue a security code for digital currencies to be transferred through the Interbank Electronic Payment System (SPEI), a transfer system owned and operated by the central bank.
A final phase of the project will allow participants without a bank account to use the digital currency, thus contributing to the financial inclusion of the country.
Mexico’s interest in cryptocurrency gained momentum in 2021, when 40% of the country’s companies were interested in adopting blockchain and cryptocurrency, according to Triple A cryptocurrency ownership data.
Growing interest in Bitcoin in Mexico has led to the installation of a Bitcoin ATM in its Senate building, with the support of various legislators and cryptocurrency enthusiasts, Cointelegraph reported. Mexico is the second largest recipient of remittances in the world, with transfers reaching a record $5.3 billion between July 2021 and July 2022, according to World Bank statistics.
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