The Bank of Mexico is preparing to introduce a central bank digital currency (CBDC) by 2024.
On Twitter, the Government of Mexico announced yesterday the Bank of Mexico would present a CBDC by 2024.
The tweet stated 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.”
Also, the Mexican government made their reports on a statement made by Bank of Mexico Deputy Governor Jonathan Heath.
Heath said that the country’s central bank has a timeline. He added that “perhaps by the end of 2024 at the latest, we should have [the CBDC] operating perfectly well.”
However, little has been said about Mexico’s CBDC, and the asset would probably be backed by the price of the Mexican peso as managed on a digital ledger.
Others Are Also Developing CBDCs Seeing Mexico
In case the Bank of Mexico successfully presents a CBDC in the coming years, it will be one of many central banks to do so. Other banks that have either created a CBDC or are in the process of doing so include those in China, Nigeria, and Sweden.
Moreover, other countries are researching CDBCs prospectively. Notably, the Bank of England recently announced that the country could launch its own CBDC by 2030. However, India has examined crypto restrictions that could surface the way for a digital currency.
In addition, the United States Federal Reserve is in the process of reviewing the potential of central bank digital currencies. However, the country is unlikely to create such an asset in the near future.