Mexico would have its national cryptocurrency by 2024 – Central Valley Business Journal

Key facts:

Digital currency will not displace cash, said a Banxico member.

Mexico has a law that regulates cryptocurrencies since 2019.

The Bank of Mexico (Banxico) seems to open the doors to the adoption of central bank digital currencies (CBDC, for its acronym in English).

According to a statement by the deputy governor of the financial institution, Jonathan Heath, the Aztec nation is preparing everything to launch its own digital currency in 2024.

We are working on a project, we even have a schedule where we think that maybe by the end of 2024 at the latest, we should have it operating perfectly well, Heath said, according to a local media.

This announcement coincides with the statements made by the newly appointed governor of Banxico, Victoria Rodrguez Ceja, in early December. The official told the Finance and Public Credit Commission of the Mexican Senate that the financial body was in the analysis of the implementation of a CBDC.

International authorities, given the interest that these virtual assets and their evolutions have aroused, have recognized the need and potential to extend the functionalities of legal tender through the potential implementation of digital currencies issued by the Central Bank, indicated Eyebrow.

It should be noted that Mexico has one of the first laws in the region that regulates collective financing, management of electronic payment funds and the commercialization of cryptocurrencies. The so-called Fintech Law was enacted in 2019, a fact reported by CriptoNoticias.

Heath also spoke about the coexistence between a digital currency and cash.

In that sense, the official assured that lThe bills and coins will not be displaced by the CBDC, since in Mexico a large part of the economy is informal. He also indicated that there is low financial inclusion, that is, there are few people with access to traditional banking.

The deputy governor of Banxico, Jonathan Heath, assured that the digital currency will work at the same time as cash. Source: Atomazul / stock.adobe.com

We are going to have the use of paper money as the predominant payment at the national level for a long time, so we do not want to be absent from these technological advances; we are there, we are going to do it and we are going to be working, added Heath.

The statements of the Banxico authorities may come as a surprise, after last October, the president of Mexico, Andrs Manuel Lpez Obrador, said that his government hopes to remain orthodox on financial matters.

According to Lpez Obrador, his government should only ensure that the countrys income is maintained and ensure proper tax collection, avoiding evasion. In addition, he assured that you dont need to be looking for innovation.

Made it clear that will not follow the path of countries like El Salvador regarding the adoption of bitcoin or other cryptocurrencies, as reported by CriptoNoticias.

While digital currencies, such as the one announced by Mexico, can benefit nations and businesses in cross-border trade, under these there is the risk of loss of privacy. These digital currencies are not anonymous and governments can take advantage of their use to exercise control over the population. They can also be confiscated by the state.

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Mexico would have its national cryptocurrency by 2024 - Central Valley Business Journal