Digital Peso Delayed in Mexico: Local Reports

Mexico’s central bank has been considering a central bank digital currency (CBDC) for more than a year now. However, the procedure is still in its early stages, making it doubtful that it would be ready for launch by 2024.

Banxico, the central bank of Mexico, stated that the digital currency is undergoing the technological, administrative, and regulatory developments necessary for the digital peso, as per the local media reports.

The local government declared its intention to launch a national digital currency in December 2021 and said in a tweet that “new technologies and next-generation payment infrastructure” will increase financial inclusion in Mexico. While that tweet indicated a 2024 launch, a year later, officials are refraining from making a launch date prediction.

The bank states: 

“The result of this initial phase entails the preparation of a budget that is currently being determined, and will in turn allow establishing a probable date on which the MDBC [CDBC] will be available.”

The PagoCel platform, which enables users to facilitate internet banking using their cell numbers or personal information, was created as a part of the initial stage of its original plan.

The strategy suggests that country’s financial institutions would be involved in a second phase, where they would provide a security code for digital currencies to be transmitted through the Interbank Electronic Payment System (SPEI), a transfer system that is run and owned by the central bank. 

The project’s ultimate phase would let individuals who don’t have bank accounts use the virtual money, encouraging their financial inclusion.

Crypto Adoption in Mexico 

According to Triple A’s research on cryptocurrency ownership, Mexico’s interest in cryptocurrencies increased in 2021, when 40% of the nation’s businesses expressed interest in implementing blockchain and cryptocurrencies. 

Ricardo Salinas Pliego, the third-richest billionaire in Mexico and owner of the massive Mexican retailer Elektra, announced back in December 2021, that Bitcoin would be accepted as a form of payment. Additionally, he advised people to invest in bitcoin rather than fiat money like the dollar and the euro.