The Mexican central bank is currently developing the legal, administrative, and technological requirements for the digital peso.
The development of Mexico’s central bank digital currency (CBDC) is still in its early stages, and it is unlikely to be ready for launch by 2024.
According to local media reports, Banxico, Mexico’s central bank, is currently working on the legal, administrative, and technological requirements for the peso’s digital version. The first of three stages proposed for the launch timeline.
The local government announced its plan to introduce a national digital currency in December 2021, noting on Twitter that the “new technologies and next-generation payment infrastructure” would improve Mexico’s financial inclusion and projecting a 2024 launch date. Authorities are reportedly avoiding predicting a launch date a year later.
“The outcome of this initial phase entails the preparation of a budget that is currently being determined, which will allow establishing a probable date on which the MDBC [CDBC] will be available,” stated Mexico’s central bank.
The original plan called for the creation of the PagoCel platform in the first stage, which would allow users to make bank transfers using their mobile numbers or personal information. The country’s financial institutions 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, in the second phase.
The project’s final stage will allow participants without bank accounts to use the digital currency, assisting the country’s financial inclusion.
According to Triple A’s crypto ownership data, Mexico’s interest in cryptocurrency accelerated in 2021, when 40% of the country’s firms expressed interest in adopting blockchain and cryptocurrency.
The growing popularity of Bitcoin in Mexico has resulted in the installation of a Bitcoin ATM in the Senate building, with the support of several legislators and crypto enthusiasts, according to Cointelegraph. According to World Bank statistics, Mexico is the world’s second-largest recipient of remittances, with transfers reaching a record $5.3 billion between July 2021 and July 2022.