The manager of Banxico, Victoria Rodriguez Ceja, at a hearing in the Mexican Senate said that the issuance of digital currency by the Central Bank will not start in 2024, as planned, but in 2025. The head of the Central Bank specified that CBDC will have additional functionality, expanding the availability of existing financial and payment instruments for citizens. The regulator plans to deploy new automation mechanisms to speed up payment processes.
“Digital currency seeks to create payment tools that focus on financial accessibility, expand opportunities for fast, secure, efficient international payments and implement features such as automation mechanisms and programmability”said Victoria Rodriguez Seha
Regarding cryptocurrencies, Rodriguez said that although Mexican President Manuel López Obrador has ruled out accepting bitcoins or any other cryptocurrency as legal tender in the country, Banxico intends to legalize their circulation.
The head of the Central Bank assured that Banxico and other agencies are exploring the possibility of regulating cryptocurrencies to protect citizens in transactions, because, unfortunately, such transactions are not currently regulated in any way by the Bank of Mexico. Cryptocurrencies are very different from CBDC because of their decentralized nature, Rodriguez Seja stressed
The head of Banxico assured that the CBDC’s digital currency is not intended to replace traditional currency or banknotes in circulation. Nevertheless, digital pesos would be “a strategic alternative to the current means of payment”.
The Association of Mexican Banks (ABM) is ready to support the regulator. President Daniel Becker recently said that the implementation of a digital currency by the Central Bank would make it possible to provide banking services to more Mexicans.