The development of Mexico’s central bank’s digital currency (CBDC) is still in its early stages, and is unlikely to be ready for launch in 2024.
According to local media reports, Mexico’s central bank, known as Banxico, is currently working on the legal, administrative, and technological requirements for a digital version of the peso. The first of three phases for the proposed launch timeline.
In December 2021, the local government announced plans to introduce a national digital currency, noting in a Twitter post that “new technology and next-generation payment infrastructure” will increase Mexico’s financial inclusion and planning the launch for 2024. A year later, the authorities reportedly avoided predicting the launch date.
“The results of this initial phase will require the preparation of a budget that is currently defined, and will allow the creation of a possible date for the MDBC. [CDBC] will be available,” Mexico’s central bank said.
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The original plan included in the first stage the creation of the PagoCel platform, allowing users to make bank transfers using their mobile numbers or personal information. The second stage will involve the country’s financial institutions, which will issue security codes for the digital currency to be transferred through the Interbank Electronic Payment System (SPEI), a transfer system owned and operated by the central bank.
The final stage of the project will allow participants without bank accounts to use digital currency, thus helping the country’s financial inclusion.
Mexico’s interest in cryptocurrencies increased in 2021, when 40% of companies in the country are interested in using blockchain and cryptocurrency, according to Triple A’s crypto ownership data.
Increased interest in Bitcoin in Mexico has led to the installation of a Bitcoin ATM in its Senate building, with the support of several legislators and crypto 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 statistics from the World Bank.