Central Bank of Mexico Delays Launch of Digital Peso Until An Undetermined Time

JAKARTA - More than a year after its announcement, Mexico's proposed central bank digital currency (CBDC) is still in its early stages and is unlikely to meet its target launch date of 2024.

According to local media reports, Mexico's central bank, known as Banxico, is working on legal, administrative and technological requirements for a digital version of the peso.

In December 2021, the local government announced its plans to introduce a national digital currency, noting in a tweet that “new technology and next-generation payment infrastructure” will enhance Mexico's financial inclusion.

The tweet said the launch would be in 2024, but a year later, authorities refused to predict the launch date.

"The outcome of this initial phase requires the preparation of a budget which is currently being determined, which in turn will allow the setting of a possible date for the availability of the MDBC [CDBC]," the central bank said, as quoted by Cointelegraph.

The initial plan includes the first phase of building the PagoCel platform, which will allow users to make bank transfers using their mobile number or personal information. The second phase will involve the country's financial institutions, which will issue security codes for the digital currency to be transferred through the Interbank Electronic Payment System (SPEI), a transfer system owned and operated by the central bank.

The final phase of the project will enable participants without bank accounts to use digital currency, promoting their financial inclusion.

Mexican interest in cryptocurrencies is picking up momentum in 2021, when 40% of companies in the country are interested in adopting blockchain and cryptocurrencies, according to Triple A crypto holding 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 legislators and crypto enthusiasts. According to statistics from the World Bank, Mexico is the world's second largest recipient of remittances, with transfers reaching a record $5.3 billion between July 2021 and July 2022.