Adoption Central bank digital currencies (CBDC, for its English acronym) is also part of the Banco de México . Agenda Follow Favorite Which he hopes to put into circulation by the end of 2024.
Nearly two years after the onset of the COVID-19 pandemic, elements to spur digital payments have emerged, leading to the emergence of CBDC. Based on this phenomenon, central banks launched their plans to diversify payment methods between countries people and companies.
Central Bank Digital Currency is the digital form of a country’s fiat currency which is also an entitlement of the Central Bank. Instead of printing money, the central bank issues coins or electronic accounts backed by the full faith and credit of the government, according to the Atlantic Council.
In the case of Mexico, Banxico handled the issue with moderation unlike other central banks, but the deputy governor Jonathan Heath It is estimated that at the end of 2024, the Mexican CBDC will be able to enter operations.
We are working on a project, we even have a timeline where we think maybe by the end of 2024 at the latest, we should make it work well (CBDC),
Paper and money will continue to dominate
Heath noted the impact of SPEI, a platform that “not many countries have and works well” and that he considers that they already have an approach to what digital currency.
However, the arrival of digital currency will not automatically replace banknotes and coins, given the high rate of informality and low financial inclusion in Mexico.
We will be using paper money as the predominant payment at the national level for a long time, so we do not want to lose sight of these technological developments; We are there, we will do it and we will work,