Key facts:
The digital currency will not displace cash, said a Banxico member.
Mexico has a law that regulates cryptocurrencies since 2019.
The Bank of Mexico (Banxico) seems to open the doors to the adoption of central bank digital currencies (CBDC, for its acronym in English).
According to a statement from the deputy governor of the financial institution, Jonathan Heath, the Aztec nation is preparing everything to launch its own digital currency in 2024.
"We are working on a project, we even have a schedule in which we think that maybe by the end of 2024 at the latest, we should have it working perfectly well," Heath said, according to a local outlet.
This announcement coincides with the statements made by the newly appointed Governor of Banxico, Victoria Rodrรญguez Ceja, in early December. The official told the Finance and Public Credit Commission of the Mexican Senate that the financial body I was in the analysis of the implementation of a CBDC.
"International authorities, given the interest that these virtual assets have aroused and their evolutions, have recognized the need and potential to extend the functionalities of legal tender through the potential implementation of digital currencies issued by the Central Bank", indicated Eyebrow.
it should be noted that Mexico has one of the first laws in the region which regulates crowdfunding, electronic payment fund management and cryptocurrency trading. In 2019, the so-called Fintech Law was enacted, a fact denounced by CriptoNoticias.
There will be CBDC but also cash
Heath also spoke about the coexistence between a digital currency and cash.
In that sense, the official assured that lNotes and coins will not be moved by the CBDC, since in Mexico a large part of the economy is informal. He also indicated that there is low financial inclusion, that is, there are few people with access to traditional banking.
The deputy governor of Banxico, Jonathan Heath, assured that the digital currency will work at the same time as cash. Source: Atomazul / stock.adobe.com
โWe are going to have the use of paper money as the predominant payment at the national level for a long time, so we do not want to be absent from these technological advances; we are there, we are going to do it and we are going to be working โ, added Heath.
AMLO chose to remain orthodox in financial matters
The statements of the Banxico authorities may come as a surprise, after last October the president of Mexico, Andrรฉs Manuel Lรณpez Obrador, said that his government hopes to remain orthodox on financial matters.
According to Lรณpez Obrador, his government should only ensure that the country's income is maintained and ensure adequate tax collection, avoiding evasion. In addition, he assured that no need to seek innovation.
Made it clear that will not follow the path of countries like El Salvador regarding the adoption of bitcoin or other cryptocurrencies, as reported by CriptoNoticias.
With CBDC there is no privacy
While digital currencies, such as the one announced by Mexico, can benefit nations and companies in cross-border trade, under these there is the risk of loss of privacy. These digital currencies are not anonymous and governments can take advantage of their use to exercise control over the population. They can also be confiscated by the state.
