The Bank of Mexico is planning to introduce a central bank digital currency (CBDC) by 2024

Currently, there are many countries that are at various stages of issuing a central bank digital currency (CBDC). While some may be sprinting through pilot programs, the section is still weighing the pros and cons. Besides, the Mexican government and the Bank of Mexico have stated that the country could launch a CBDC by 2024.

Bank of Mexico to issue CBDC in 2024

On December 30, the official Mexican government account announced that the bank of Mexico is intending to issue a CBDC by 2024, aiming to build a next-generation payment infrastructure to promote boost the domestic financial system. The tweet said that “The Banxico [Bank of Mexico] reports that by 2024 it will have its own digital currency in circulation.” It said that this decision was made considering that CBDCs and related technology are “extremely important as options of great value to advance financial inclusion in the country.”

However, in the context of this news, it is important to look at the burgeoning state of cryptocurrencies in Mexico to get an understanding of the extent of adoption. In fact, the country’s cryptocurrency trading activity has been very active this year. For example, the largest exchange in Mexico, Bitso.

Bitso already offers Bitcoin wallet cash deposits as well as cash withdrawals at more than 140,000 convenience stores across the country. This means that 140,000 convenience stores have effectively been turned into crypto ATMs. In addition, Bitso also supports El Salvador’s Chivo Bitcoin wallet and collaborates with Circle to launch a cross-border payment solution.

However, the Mexican government has largely maintained a cautious stance when it comes to the official adoption of cryptocurrencies. In October, President Andrés Manuel López Obrador announced Mexico had no plans to accept Bitcoin as legal currency.

“We will not change in this respect. We see fit to maintain the legitimacy of financial management. We are not going to try to innovate much in the national financial system.”

On the other hand, Banco de México’s note on the development of cutting-edge payment technology via CBDC could signal a shift in official government stance in the near future.

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