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Mexico’s Planned Central Bank Digital Currency (CBDC) Is Still In Its Early Stages

Mexico’s planned central bank digital currency (CBDC) is still in the beginning stages more than a year after it was first announced, and it is very unlikely that it would be ready for circulation by the target date of 2024. According to reports from the local media, the Mexican central bank, also known as Banxico, is reportedly working on the legislative requirements, administrative needs, and technical requirements for the digital form of the peso.

Following the announcement of the local government’s intention to launch a national digital currency in December 2021, the local government noted in a tweet that the “new technologies and next-generation payment infrastructure” would improve Mexico’s financial inclusion. Specifically, the tweet stated that the “new technologies and next-generation payment infrastructure” would improve Mexico’s financial inclusion. Even though that tweet said a launch would happen in 2024, the government is not making any predictions about when it will happen.

The initial step of the original proposal called for the development of a platform called PagoCel, which would let users conduct bank transfers by providing either their personal information or their mobile phone numbers. A second phase would involve the financial institutions of the nation. These institutions would be responsible for issuing a security code for digital currencies that were to be transferred through the Interbank Electronic Payment System (SPEI). The central bank owns and operates this transfer system.

Participants in the project who do not have bank accounts will be encouraged to become financially engaged if the final stage of the project enables them to utilise the digital currency. According to the data compiled by Triple A regarding cryptocurrency ownership, the level of enthusiasm for cryptocurrencies in Mexico began to increase in the year 2021. At that time, forty percent of the country’s businesses expressed an interest in implementing blockchain technology and cryptocurrencies.

The growing popularity of Bitcoin in Mexico has resulted in the construction of a Bitcoin ATM in the Senate building of that country. This endeavour received backing from various senators as well as crypto aficionados. According to figures provided by the World Bank, Mexico is the second-largest receiver of remittances in the world. During the period of July 2021 to July 2022, the total amount of money sent back to Mexico reached a record high of $5.3 billion.

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Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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