• The Mexican central bank digital currency (CBDC), the digital peso, is unlikely to be ready by 2024, as was announced back in 2021 by the Mexican government.
• Representatives from Banxico, the central bank of Mexico, stated the development of the currency was still in its initial stages, and there is still no date set for its launch.
• On the possible date of issuance of the digital peso, Banxico stated that 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 said CBDC will be available.
The Mexican government announced the development of its own digital peso, or CBDC (Central Bank Digital Currency) back in December 2021, with the launch planned for circa 2024. However, the timeline for the launch of the digital peso is becoming increasingly unlikely, according to new information coming from Banxico, the central bank of the country.
Banxico has stated that the development of the currency is still in its initial stages, and there is still no date set for its launch. The general directorate of payment systems and market infrastructures, the division of the bank tasked with its construction, is currently determining the requirements for its issuance, and thus a budget is being prepared that will allow them to establish a probable date on which said CBDC will be available.
In April, the governor of Banxico, Victoria Rodríguez Ceja, stated that the entire development cycle would take the institution around three years. This, however, contradicts the statement made on Dec. 29, 2021, when the government had announced the launch of the digital peso would occur circa 2024. In addition, more than $500,000 were used for the development of this currency during 2022, allocated from funds provided by Banxico.
The Mexican CBDC is a step forward in the development of digital currencies, as it is the first to be issued by a central bank. This will enable the Mexican government to have more control over the currency, as well as make it easier for individuals to make payments, transfers and investments in the currency. In addition, it will make it easier for the government to track financial activities.
The Mexican CBDC is seen as a major step forward in the development of digital currencies, and it is expected that other countries will soon follow in Mexico’s footsteps. It will be interesting to see how the development of this currency progresses, and when it will be ready for use.