Published: 24.04.2022
Article reading time:
2 minutes.
The management of the Bank of Mexico (Banxico) announced that the digital currency of the Central Bank will have additional features to automate and speed up financial processes.
Banxico Governor Victoria Rodriguez Ceja said at a hearing in the Mexican Senate that the issuance of the Central Bank’s digital currency will not begin in 2024, as planned, but in 2025. The head of the Central Bank specified that the CBDC will have additional functionality, expand the availability of existing financial and payment instruments for citizens. The regulator plans to deploy new automation mechanisms to speed up payment processes.
“The digital currency seeks to create means of payment aimed at financial inclusion, expand the possibilities for fast, secure, efficient international payments, and implement features such as automation mechanisms and programmability,” said Victoria Rodriguez Ceha.
Regarding cryptocurrencies, Rodriguez said that although Mexican President Manuel López Obrador has ruled out accepting bitcoin or any other cryptocurrency as legal tender in the country, Banxico is going to legalize their circulation.
The head of the Central Bank assured that Banxico and other departments are studying the possibility of regulating cryptocurrencies to protect citizens when making transactions, since, unfortunately, such operations are not currently regulated by the Bank of Mexico. Cryptocurrencies are very different from CBDCs due to their decentralized nature, stressed Rodriguez Ceha
The head of Banxico assured that the digital currency of the Central Bank is not intended to replace traditional currency or banknotes in circulation. However, digital pesos would be a “strategic alternative to current means of payment.”
The Association of Mexican Banks (ABM) is ready to support the regulator. Recently, President Daniel Becker said that the introduction of the digital currency of the Central Bank will provide an opportunity to provide banking services to more Mexicans.
Source: Bits
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