Mexican digital peso delayed, launch date uncertain

from Mexico central bank digital currency (CBDC) development is still in an early stage and unlikely to be ready for launch by 2024.

According to According to local media, Mexico’s central bank, known as Banxico, is currently working on the legal, administrative and technological requirements for the digital version of the peso. The first of three stages of the proposed launch schedule.

In December 2021, the local government announced plans to introduce a national digital currencynoting in a Twitter post that “new technologies and next-generation payment infrastructure” would improve Mexico’s financial inclusion and project the launch for 2024. A year later, officials would avoid predicting a launch date.

“The outcome of this first phase involves the preparation of a budget being determined, which will in turn establish a probable date when the MDBC [CDBC] will be available,” Mexico’s central bank said.

Related: Why crypto money transfer companies are flocking to Mexico

The initial plan included in the first stage the creation of the PagoCel platform, allowing users to make bank transfers using their mobile phone numbers or personal information. A second phase will involve the country’s financial institutions, which will issue a security code for digital currencies to be transferred through the Interbank Electronic Payment System (SPEI), a transfer system owned and operated by the central bank.

A final stage of the project will allow participants without bank accounts to use digital currency, contributing to the country’s financial inclusion.

Mexico’s interest in cryptocurrency gained momentum in 2021, when 40% of businesses in the country wanted to adopt blockchain and cryptocurrency, according to to Triple A’s crypto ownership data.

The growing interest in Bitcoin in Mexico has led to the installation of a Bitcoin ATM in its Senate building, with the support of several lawmakers and crypto enthusiasts, Cointelegraph reported. Mexico is the second largest recipient of remittances in the world, with transfers reaching a record $5.3 billion between July 2021 and July 2022, according to World Bank statistics.