Cryptocurrency

Mexico CBDC likely delayed beyond 2024

Hull Invest

According to local media, Mexico’s central bank digital currency (CBDC) will likely not be ready by 2024, as previously predicted. January 2nd.

News company El Sol de Mexico has asked the Bank of Mexico for transparency regarding the status of the CBDC. The central bank replied:

The results of this early stage will entail the preparation of the currently determined budget, which in turn will allow us to establish a possible date for the CBDC to become available.

In late 2021, the Bank of Mexico and its Deputy Governor Jonathan Heath proposed that the country’s digital peso be operational by 2024.

In addition, Bank of Mexico Governor Victoria Rodriguez Seja proposed in April 2022 to have a CBDC in circulation by 2025.

A statement last week suggested otherwise. It is possible that the Bank of Mexico meant that he would set a specific start date within the 2025 deadline from his 2024, but the context is that the overall timeline for the CBDC is uncertain. It strongly suggests that

The Bank of Mexico’s CBDC is being developed in three stages. The first stage involves creating a platform called PagoCel. This will eventually be used for mobile and his PIN based transfers. In the second phase, financial institutions will adopt his CBDC. In the third and final stage, the asset becomes available for use by individuals.

A statement last week from the Bank of Mexico suggested that the project is not past the initial budgeting stage. The bank also said 10.22 million pesos ($532,000) had been allocated for the creation of the CBDC during the 2022 fiscal year.

Like all other central bank digital currencies, Mexico’s CBDC will be a digital asset that matches the value of the local fiat currency (in this case, the Mexican peso).

Mexico’s CBDC will reportedly not be built on blockchain technology. However, it is intended for “unbanked” individuals who do not have regular access to bank accounts.

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