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Mexico's digital peso launch gets delayed

Tuesday 10 January 2023 09:45 CET | News

The Mexican central bank Banxico has announced it is still working on legal, administrative, and technological requirements for the peso’s digital version.

 

In December 2021, the local government announced its plan to introduce a national digital currency, noting in a tweet that the ‘new technologies and next-generation payment infrastructure’ would improve Mexico’s financial inclusion. While that tweet mentioned a launch in 2024, a year later, authorities are avoiding predicting a launch date.

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 central bank said.

The Mexican central bank have announced they are still working on legal, administrative, and technological requirements for the peso’s digital version.

How does the government aim to get the digital peso to market?

The original plan included in its first stage the creation of the PagoCel platform, allowing users to make bank transfers using their mobile numbers or personal information. A second phase would involve the country’s financial institutions, which 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 stage of the project would allow participants without bank accounts to use the digital currency, promoting their financial inclusion.

Rising interest in digital currencies

Mexico’s interest in cryptocurrency picked up momentum in 2021, when 40% of the firms in the country were interested in adopting blockchain and cryptocurrency, according to Triple A’s crypto ownership data.

Increasing 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 one of the second-largest recipient of remittances in the world, with transfers reaching a record USD 5.3 billion between July 2021 and July 2022, according to statistics from the World Bank.


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Keywords: CBDC, digital currency, central bank, cryptocurrency, blockchain
Categories: DeFi & Crypto & Web3
Companies: Banxico
Countries: Mexico
This article is part of category

DeFi & Crypto & Web3

Banxico

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