Mexico’s Digital Peso: Revolutionizing the Financial System?

• The Mexican government announced in 2021 that the digital peso, the country’s central bank digital currency (CBDC), would be launched circa 2024, however this timeline is becoming more and more unlikely to be fulfilled.
• Representatives from Banxico, the central bank of Mexico, have stated the development of the currency is still in its initial stages and there is still no date set for its launch.
• More than $500,000 was used for the development of the digital peso during 2022, allocated from funds provided by Banxico.

The Mexican government announced in 2021 that the digital peso, the country’s central bank digital currency (CBDC), would be launched circa 2024. However, this timeline is becoming more and more unlikely according to representatives from Banxico, the central bank of Mexico. The development of the currency is still in its initial stages and there is still no date set for its launch.

Banxico released a statement in regards to the matter, stating the result of this initial phase entails the preparation of a budget that is currently being determined, and will in turn allow establishing a probable date on which said CBDC will be available. The Governor of Banxico, Victoria Rodríguez Ceja, also stated in April that the whole development cycle would take the institution around three years.

In addition to the lack of a concrete launch date for the digital peso, more than $500,000 was used for the development of this currency during 2022, allocated from funds provided by Banxico. Despite this, it is still unclear if the Mexican CBDC will be ready by 2024, as was originally announced.

The digital peso is an important development in the world of digital currency, as it will be the first central bank digital currency in Latin America. It is anticipated that it will help the country in its efforts to modernize its financial system and reduce the cost of financial services, such as remittances and overseas payments.

Whether or not the digital peso will be ready by 2024 remains to be seen, but it is clear that the Mexican central bank is making progress in its efforts to create the currency. The digital peso has the potential to revolutionize the country’s financial system and it will be interesting to observe its progress over the coming years.