The governor of the Bank of Mexico, Banco de Mexico, made important statements about CBDCs. The governor announced that Mexico will put its CBDC into full circulation within the next 3 years.
Mexico Central Bank Sets Date for CBDC
Bank of Mexico (Banxico) Governor Victoria Rodriguez Ceja said at a hearing in the Mexican Senate on April 21 that the CBDC (MDBC) will “be in circulation” by 2025.
According to Rodriguez, the CBDC will provide greater financial inclusion for citizens while expanding existing payment options. They also aim to establish new automation mechanisms to speed up payment processes.
Rodriguez made the following statements in the continuation of his statements;
Digital currency aims to produce payment instruments aimed at financial inclusion, expand options for fast, secure, efficient and interoperable payments in the economy, and apply complementary functions to (existing) payment instruments such as automation mechanisms, programmability and innovation.
Banco de México Considers Regulating Cryptocurrencies
Although Mexican President Manuel López Obrador has ruled out the possibility of accepting Bitcoin or any cryptocurrency as legal tender in the country, Mexico’s own central bank is now working to give them greater legality through regulation.
Rodriguez said that Banxico and other central bank groups are examining the possibility of regulating the use of cryptocurrencies in the country to protect citizens when making their transactions, as such transactions are not protected or regulated by the Bank of Mexico.
[Several] central bank groups that Banxico participates are reviewing [the regulation] to further protect those involved in the financial system.
This means that although Mexico is launching its own digital currency (very different from a cryptocurrency), the country does not want to be left behind in terms of regulations of the wider crypto industry, which will help the Government collect more taxes.
CBDCs Are Not Cryptocurrency
The Governor of Banxico explained the bank’s positive position towards future regulation of the crypto industry. However, he stressed that cryptocurrencies are very different from CBDCs due to their decentralized nature that allows citizens to fully control their money.
On the other hand, he added that this new CBDC is not intended to replace traditional currency or circulating banknotes. Still, it will be a strategic alternative to existing payment instruments.
The Bank of Mexico works closely with the Bank for International Settlements to develop its CBDC; However, this is not much. So Mexico still has a lot of work ahead of it.
Recently, pro-Bitcoin senator Indira Kempis introduced a bill to incorporate a CBDC into the legal system, paving the way for successful implementation.