The government announced that it will be in 2024 when the CBDC will be operating; seek to advance in financial inclusion and join new technologies.
The Bank of Mexico (Banxico) is preparing its digital currency by 2024, in line with other central institutes, the federal government reported.
“Banxico informs that, by 2024, it will have its own digital currency in circulation as these new technologies and the next-generation payment infrastructure are considered of utmost importance as options of great value to advance financial inclusion in the country,” said the government. from Mexico on his Twitter account.
A few days earlier, the deputy governor of the central bank, Jonathan Heath, said that the CBDC (central bank digital currency, for its acronym in English) could come into operation at the end of 2024.
“By the end of 2024, at the latest, we should have it operating perfectly well,” he said in a video conference organized by the rating agency Standard & Poor’s.
The chief economist of Banco Base, Gabriela Siller, highlighted that, from what is known so far, it is a digital currency and not a cryptocurrency.
Also, he said, it is striking that the first official announcement comes from the federal government and not from Banxico: “there is no statement of this on the bank’s page or on its social networks.”
Janneth Quiroz, an analyst at Grupo Financiero Monex, highlighted in his Twitter account that, so far, 83 countries have planned to launch their CBDC, of which at least eight are Latin American and Chile is in the study phase
“One of the most advanced countries in the region in Jamaica, with the pilot launch, in May, of its eCurrency that will end in December.”
What are digital currencies issued by central banks?
According to a study carried out by BBVA Research, CBDCs are an alternative to cash that can be universally accessible or restricted to a particular group of users, that is, limited to banks or financial institutions.
CBDCs can also be anonymous, as in the case of cash, or identified, as if they were checking accounts. The former is based on tokens and the latter on accounts.
Difference between a digital currency and a cryptocurrency
BBVA explained in a document that digital currencies backed by central banks, such as the possible digital euro and the digital yuan, may be a reality in the coming years. Unlike cryptocurrencies, such as bitcoin and ethereum, these currencies promise less volatility and greater security. In addition, they will have the support of their respective monetary institutions, responsible for ensuring financial stability.