Mexico is expected to be one of the first Latin American countries to join the club of countries having central bank digital currencies (CBDC). The news was verified by the Undersecretary of Finance, Gabriel Yorio, when he presented an analysis of the country’s adoption of digital payments and the resultant decline in cash payments.
Yorio said, “I think there is a moment in terms of the intensive use of digital platforms, decreased use of cash, and eventually I think that Mexico is going to be one of the countries that has one of the first digital currencies,”
He added, “Once you have a digital currency that works like a traditional currency, which is more likely to be used for electronic commerce, it will help consolidate a digital bail bond agenda in Mexico.”
Because of the large unbanked population (almost 60% according to INEGI statistics) that lives in rural regions, far from metropolitan centres, and disadvantaged communities, the authorities realise that a large portion of the Mexican economy is still running in cash.
Banxico intends to deploy its digital currency as late as 2024, allowing more Mexicans to participate in the financial system. If this happens, Mexico will be one of the first nations to legalise CBDC.
The Bahamas was the first government in Latin America, and perhaps the world, to create its own digital currency, the Sand Dollar. Sweden quickly followed, coining the eKrona. Approximately 100 CBDC initiatives are now in various stages of testing and analysis across the world.
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