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Banco de Mexico set to launch CBDC in 3 years

Bank of Mexico announced plans to launch a CBDC in 2024
Bank of Mexico announced plans to launch a CBDC in 2024

The Governor of Mexico’s central bank, Victoria Rodriguez Ceja, has said that the country will launch its central bank digital currency (CBDC) by 2025. During a hearing with the Mexican Senate, the official said that the CBDC would foster financial inclusion for all citizens while supporting the growth of the existing payments system.

Banco de to launch CBDC in 3 years

Rodriguez said that the CBDC would be equipped with automation systems to boost fast transaction processing times. The new date for the launch of the CBDC is a little further from what had earlier been predicted by the central bank. In December last year, the institution said that the CBDC would be launched in 2024.

“The digital currency seeks to generate means of payments aimed at financial inclusion, expand options for fast, secure, efficient and interoperable payments in the economy, and implement complementary functionalities to the (existing) means of payment, such as automation mechanisms, programmability, and innovation,” the governor said.

The governor also added that cryptocurrencies differed from CBDCs because the former operated on decentralization. Cryptocurrencies allowed citizens to have full control over their assets. On the other hand, CBDCs were backed by the government and were a digital version of fiat money.

She also said that a CBDC would not replace fiat currency and instead, it would complement it. The Bank of Mexico is working alongside the Bank of International Settlements to launch the CBDC, but a successful launch for the same needed much work.

Crypto regulations in Mexico

The President of Mexico recently said that the country would not adopt Bitcoin as legal tender. However, the Bank of Mexico is turning its focus on cryptocurrency regulations to ensure that Bitcoin and other cryptocurrencies are given better clarity.

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Rodriguez has also added that the Bank of Mexico and other central banks globally were looking into creating a clear regulatory framework to promote the use of cryptocurrencies within the country. A clear regulatory framework will protect citizens making transactions in cryptocurrencies.

“Several central bank groups, in which Banxico participates, are reviewing this issue [of regulation] so as to further protect those participating in the financial system,” Rodriguez added.

Therefore, despite Mexico’s plans for a CBDC, the country still showed a positive stance regarding private cryptocurrencies. Regulating cryptocurrencies could open more opportunities for the government to collect taxes.

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