• The Mexican central bank digital currency (CBDC), the digital peso, is unlikely to be ready by 2024, as was announced by the Mexican government in 2021.
• Representatives from Banxico, the central bank of Mexico, stated the development of the currency is still in its initial stages, and there is still no date set for its launch.
• The general directorate of payment systems and market infrastructures, the division of the bank tasked with its construction, is currently determining the requirements for its issuance.
The Mexican government announced the development of its own digital peso, the Mexican central bank digital currency (CBDC), back in 2021, with the intention of launching it circa 2024. However, recent information coming from Banxico, the central bank of the country, has revealed the timeline for the launch of the currency is becoming increasingly unlikely to be fulfilled.
In a statement, representatives from Banxico stated the development of the currency is still in its initial stages, and there is still no date set for its launch. In order to move forward with the development, the general directorate of payment systems and market infrastructures, the division of the bank tasked with its construction, is currently determining the requirements for its issuance. Furthermore, it was disclosed more than $500,000 was used for the development of this currency during 2022, allocated from funds provided by Banxico.
The governor of Banxico, Victoria Rodríguez Ceja, has estimated the whole development cycle will take the institution around three years. However, this contradicts the statement made in 2021 by the Mexican government when they initially announced the development of the currency, implying the timeline for the launch of the digital peso is becoming increasingly more uncertain.
Given the current situation, it is highly unlikely the digital peso will be ready by 2024. Banxico will have to provide more information on the requirements and timeline for the development and launch of the currency, in order to give the public more confidence in the project. If the development of the currency is successful, it could potentially revolutionize the Mexican economy and the way the people transact.