Mexican CBDC Is Not Ready To Be Available Before 2024

Key Points:

• Mexico’s central bank stated in a statement that the development of the Mexican CBDC is still in its early stages, and no timeline for its introduction has been set.
• More than $500,000 was discovered to have been spent on the development of this currency throughout 2022, with financing provided by Banxico.

The Mexican central bank digital currency (CBDC), the digital peso, is unlikely to be available by 2024, as the Mexican government declared in 2021. 

Representatives from Banxico, Mexico’s central bank, noted in a statement that the currency’s development is still in its early phases, and no date for its introduction has been determined.

The Mexican government announced the development of its own digital peso – the Mexican CBDC, via social media on December 29, 2021, with a debut date of 2024. However, according to fresh information from Banxico, the country’s central bank, this timeframe is becoming increasingly unlikely to be met.

According to local sources, the Mexican CBDC is still in its early phases, with the general directorate of payment systems and market infrastructures, the bank division tasked with its development, still setting the requirements for its issuance.

“The consequence of this initial step implies the establishment of a budget that is presently being defined, and will in turn allow defining a probable date on which said CBDC will be available,” Banxico said of the possible date of issuance of the digital peso.

Varying government officials have offered different estimates for the Mexican CBDC’s start date. Furthermore, it was revealed that more than $500,000 was spent on the development of this currency throughout 2022, with funding provided by Banxico. The governor of Banxico, Victoria Rodrguez Ceja, claimed in April that the entire growth cycle would take the institution three years. This, however, contradicts the institution’s claims that there is currently no launch date for the digital peso.

Rodriguez Ceja also made a clear contrast between the prospective CBDC and other cryptocurrencies at the time, claiming that they were unsupported assets and not legal money in the country. The Mexican CBDC is intended to be coupled with the traditional financial system, allowing banks to enable the exchange of these tokens using the existing payment system.

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