Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Mexico Will Be One of the First Countries to Launch a CBDC in Latin America

CryptocurrencyMay 13, 2022 11:30PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
Mexico Will Be One of the First Countries to Launch a CBDC in Latin America

  • A high-level official has confirmed plans by the Bank of Mexico (Banxico) to launch the digital peso in 2024.
  • Authorities recognize that a large portion of the Mexican economy still uses cash, due to almost two-thirds of the population not being banked.

Mexico is likely to become one of the first countries in Latin America to join the club of nations with central bank digital currencies (CBDC). The news was confirmed by the Undersecretary of Finance, Gabriel Yorio, when presenting analysis of the use of digital payments in the country and the subsequent decrease of those in cash.

"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," Yorio commented during the presentation of the Survey of National Financial Education (ENIF). The official explained that the issuing institute has already been encouraging digital payments through the CoDi platform. “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,” he added. The authorities recognize that a large portion of the Mexican economy still operates through cash, due to the sizeable unbanked population (almost 60% according to INEGI data) that resides in rural areas, far removed from urban centers, and marginalized areas.

The Launch of the Digital Peso in 2024

Banxico plans to launch its digital currency as late as 2024, which will allow more Mexicans to be included in the financial system. If so, Mexico would become one of the first countries to put a CBDC into circulation.

The first country to launch its own digital currency in Latin America, and indeed the world, was The Bahamas, which issued the Sand Dollar. Sweden followed soon after, coining the eKrona. Currently, around 100 CBDC projects worldwide are in different phases of testing and analysis.

The other country in the region to be making progress towards issuing a digital currency is Chile. The South American nation is expected to decide on its launch in early 2023.

Mexico considers it extremely important to adopt blockchain technology as a means to increase financial inclusion and improve the payment system.

"Banxico is pleased to reveal that by 2024 it will have its own digital currency in circulation, considering these new technologies and the next-generation payment infrastructure to be of the utmost importance as options of great value to advance financial inclusion in the country," the bank said in a statement on its Twitter (NYSE:TWTR) account on December 29th.

On the Flipside

  • The recent announcements and plans for the launches of centralized digital currencies come at a critical time for private cryptocurrencies, which have lost some $200 billion in market cap due to a variety of factors, including fears surrounding interest rate hikes by the world’s central banks.

Continue reading on DailyCoin

Mexico Will Be One of the First Countries to Launch a CBDC in Latin America
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email