Crypto

Bank of Mexico Set to Launch CBDC by 2024

Bank of Mexico Set to Launch CBDC by 2024

By 2024, the Bank of Mexico will have launched the CBDC.

By the end of 2024, the Mexican central bank plans to launch its digital currency.

By 2024, Mexico’s central bank (Banco de México) plans to “have its digital currency in circulation.” As a result, the Latin American country joined the ranks of China and Indonesia, both of which have announced plans to introduce CDBCs in the near future.

By 2024, the peso will be digital.

The Mexican government said in a recent tweet that the Banco de México (Mexico’s Central Bank) will launch a CBDC in the country’s financial system by 2024.

The authorities emphasized the significance of such a step, claiming that it may be “very beneficial to advancing financial inclusion” in the country.

Jonathan Heath, Deputy Governor of Banco de México, verified the news during an interview for a conference held by S&P Dow Jones Indices, saying:

“We’re working on a project, and we even have a timeframe where we expect we’ll have it fully operational by the end of 2024 (CBDC).”

A CBDC is not the same as a decentralized cryptocurrency like bitcoin. The former is a digital representation of fiat money. It is completely centralized and regulated by a central bank. Bitcoin, on the other hand, is decentralized because it is not backed by a central authority.

Related:  In the Metaverse, 'Crypto-states' Will Compete With Corporations

In recent months, Mexico has taken a pro-bitcoin attitude. Elektra, the country’s largest grocery chain, has permitted consumers to pay their bills in Bitcoin instead of traditional currency.

Furthermore, Ricardo Salinas Pliego, Mexico’s third-richest man, compared the major cryptocurrency to gold and recommended people invest as soon as possible.

Who Else Is Hurrying to Become a CBDC?

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

The People’s Republic of China — the country with the most unfriendly posture toward cryptocurrencies – has made multiple attempts to promote its digital yuan during the last 12 months, in keeping with its communist system.

At one time, the authorities announced that the financial product will be available to athletes and foreign guests attending the 2022 Beijing Winter Olympics.

Indonesia likewise announced plans to produce a digital version of its national currency earlier this month. A CBDC, according to the country’s central bank, is a more stable alternative than bitcoin, ether, and other digital assets.

“One of the weapons to combat crypto would be a CBDC. “We believe that people will regard CBDC as more trustworthy than cryptocurrency,” the financial institution claimed.

The Author

Samuel Adeshina

Samuel is a financial reporter whose interests include blockchain, market, business, insurance, and Crypto to provide relevant information to all interested.