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Bank of Mexico to Launch Its CBDC by 2024

Mexico’s central bank, Banco de Mexico, announced that it would have its own digital currency in circulation by 2024. The Latin American country was able to join other countries like China and Indonesia that have also announced plans to launch a CDBC.

Digital Peso in 2024

A recent tweet by the Mexican government revealed that Banco de Mexico, the Central Bank of Mexico, will implement a CBDC within the country’s financial systems by 2024.

Authorities emphasized the importance of such an action, saying that it could “greatly value to advance financial inclusion in the country.”

Jonathan Heath, the Deputy Governor of Banco de Mexico, confirmed this news during an interview with S&P Dow Jones Indices.

“We are working on a project, we even have a timeline where we think that perhaps by the end of 2024 at the latest, we should have it operating perfectly well (CBDC).”

The CBDC is very different from decentralized cryptocurrencies like bitcoin. The digital version of fiat currency is the former. It is completely centralized and controlled by a central bank. Bitcoin, on the other hand is decentralized because it doesn’t have a central authority.

Mexico has been pro-bitcoin in recent months. The country’s largest supermarket chain, Elektra, allowed customers to pay their bills using Bitcoin instead of fiat currencies a few weeks back.

Ricardo Salinas Pliego, Mexico’s third richest person, also compared the primary cryptocurrency with gold and recommended that people invest in it as soon possible.

Who else is racing towards a CBDC

Many countries around the world have set their sights on launching a digital currency central bank.

The People’s Republic of China, which is the country that has the most hostile attitude towards cryptocurrency, has attempted to promote its digital currency yuan many times over the past 12 months. This is in line with its communist regime. The authorities later announced that they would allow foreign visitors and athletes to use the financial product at the 2022 Beijing Winter Olympics.

In Indonesia, earlier this month, plans were made to issue a digital version of its national currency. A CBDC, according to the nation’s central bank, is more reliable than bitcoin, ether and other digital assets.

“A CBDC would be one of the tools to fight crypto. We assume that people would find CBDC more credible than crypto,” the financial institution stated.