The progress of Mexico’s central bank digital currency (CBDC) is still in the early stages and it does not seem likely to be ready for launch by 2024.
According to local media sources, the agency responsible, Banxico, is currently occupied with the legal and administrative requirements for the digital peso. This was the first of three phases in the planned rollout schedule.
The Mexican government first announced their intention to create a national digital currency back in December 2021, with plans to leverage new technologies and cutting-edge payment infrastructure to boost financial inclusion in the country. However, one year on, authorities have made the decision not to offer any predictions as to when the currency might be ready.
“The result of this initial stage is the formulation of a budget. This budget will be used to establish a likely date for the MDBC [CDBC] to become available,” said Mexico’s central bank.
Related: Why are crypto remittance companies flocking to Mexico?
The original plan for the launch included the creation of the PagoCel platform in the first stage, which would enable users to perform bank transfers using their mobile phone numbers or personal information. In the second phase, the country’s financial institutions will issue a security code for digital currencies to be transferred using the Interbank Electronic Payment System (SPEI), owned and operated by the Mexican central bank. Finally, the third stage will allow people without bank accounts to participate in the new currency, to promote financial inclusion in the country.
Interest in cryptocurrency amongst the Mexican population has been increasing over 2021, with 40% of companies in the country expressing interest in adopting blockchain and cryptocurrencies, according to Triple A data on crypto ownership. Additionally, Bitcoin has been gaining traction in the country, culminating in the installation of a Bitcoin ATM in the Senate building, with the support of various legislators and crypto enthusiasts. Mexico is the second largest recipient of remittances in the world, with an estimated record of $5.3 billion flowing from July 2021 to July 2022, according to World Bank figures.
