According to the Mexican government and the Bank of Mexico, the country might implement a CBDC by 2024. This digital currency issued by the central bank would presumably be backed by and connected to the value of the Mexican peso. Mexico is one of several nations that are developing CBDCs, along with China, Sweden, and Nigeria.
The Mexican government stated that the Bank of Mexico will launch a CBDC by 2024.
“The Banxico [Bank of Mexico] reports that by 2024, it will have its own digital currency in circulation,” according to the announcement. This decision was taken because CBDCs and related technology are “extremely important as options of great value to advance financial inclusion in the country,” according to the statement.
The Mexican government appears to have based its assessment on a recent video conference address by Bank of Mexico Deputy Governor Jonathan Heath.
Heath stated that the country’s central bank has a timeframe and that “perhaps by the end of 2024 at the very latest, we should have [the CBDC] operating perfectly well.”
Though nothing is known about Mexico’s CBDC, the asset would apparently be backed by and tied to the value of the Mexican peso, and would be managed on a digital ledger.
If the Bank of Mexico successfully implements a CBDC in the future years, it will join a growing number of central banks. Other banks that have established or are in the process of establishing CBDCs include those in China, Nigeria, and Sweden.
Other countries are looking towards CDBCs in the future. Notably, the Bank of England has declared that the UK may introduce its own CBDC by 2030, while India is considering crypto limitations that might pave the way for a digital currency.
The Federal Reserve of the United States is also investigating the possibility of central bank digital currencies, however the government is unlikely to produce such an asset in the near future.