Mexico’s apex bank (the Banxico) has revealed that it plans to launch the digital Pesos within the next three years. While speaking at a senate hearing, the bank’s chief, Victoria Rodriguez Ceja, disclosed that the 3-year period would give the bank the appropriate time to ensure that the national digital currency completes the three money characteristics and greater financial inclusion.
Mexico’s Central Bank Governor Provides An Update On CBDC Progress
Through its governor (Victoria Rodriguez Ceja), the apex bank revealed to the Senate that it had developed a rough estimate for the period in which the bank would establish a national digital currency. Ceja disclosed this much while rendering the bank’s annual report to the Senate.
She added that “we are convinced that we would need up to three years to finalize the launch and the issuance of the national digital currency.” According to her, the digital Pesos would have completed the three money characteristics, especially a value store and an accounting unit.
There Are Numerous Benefits Of Having The Digital Pesos – Banxico’s Chief
The Banxico started to research the development of a national digital currency last December, with the governor enlightening the Senate about the possible benefits of having a national digital currency. At that time, Ceja further disclosed to the Senate there were several differences between the private digital currencies and a national digital currency.
She further said the digital Pesos would be pegged in a 1:1 ratio with the fiat Pesos and backed by the apex bank. Ceja also revealed a warning about private digital assets saying, “no authorities are backing digital assets, which nullifies them as a legal tender. Hence, anyone holding such currencies is taking a huge risk.”
Mexico’s apex bank believes that having the digital Pesos would be highly enticing for the bankless residents and enhance their inclusivity among the banked. Thus, the digital Pesos will serve as an additional payment option for anyone willing to use it. However, Ceja opined that it would create more financial payment opportunities, especially for small business owners.
World Bank Data About Mexico’s Digital Payment Space
A 2021 World Bank data shows that Mexico is one of the nations with the lowest financial inclusion rate. The data claimed that only 37.5% of adults with a bank account as of last year. The report also claimed that only 32.5% of its population made digital payment transactions within the same period. This data proves that Mexico is at a disadvantage (in terms of activeness in the digital payments market) in comparison to other nations around it.
Hence, Banxico hopes that the launch of the digital Pesos will remedy this situation. The association of commercial banks in Mexico has also pledged their support and provided all the help the Banxico needs to design and issue the digital Pesos. Mexico joins the rising number of nations at different stages in the development and launch of a national digital currency.