© Reuters
Investing.com – The Bank of Mexico plans to introduce a central bank digital currency (CBDC) by 2024, according to the Mexican government. The announcement arrived on Twitter (NYSE :), indicating that “La Banxico [Banque du Mexique] announces that by 2024 it will have its own digital currency in circulation “.
The announcement clarified that the decision was made on the understanding that CBDCs and related technology are “extremely important as high-value options for advancing financial inclusion in the country.”
Mexico as a pioneer of CBDCs
The Mexican government appears to have based its report on a statement made by Bank of Mexico deputy governor Jonathan Heath during a recent video conference. On the occasion, Heath said the country’s central bank has a timetable and added that “maybe by the end of 2024 at the latest we should have the CBDC fully operational.”
While not much has been said about the Mexican CBDC, the asset would likely be backed against the Mexican peso and processed on a digital ledger.
The trend is in favor of CBDCs
If the Bank of Mexico is successful in introducing a CBDC in the coming years, it will be one of many central banks to do so. Other banks have created a CBDC or are in the process of doing so, notably in China, Nigeria and Sweden.
Other countries are studying CBDCs prospectively. Notably, the Bank of England recently announced that the country could launch its own CBDC by 2030, while India considered restrictions on cryptocurrencies that could pave the way for a digital currency.
The US Federal Reserve is also currently examining the potential of central bank digital currencies, although the country is unlikely to create such an asset in the near future.
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