Central Bank of Mexico Will Launch Its CBDC In 3 Years

On April 21, Bank of Mexico Governor Victoria Rodriguez Ceja said at a hearing in the Mexican Senate that the CBDC (MDBC) would be “distributed” by 2025.

According to RodriguezThe CBDC enables greater financial inclusion for citizens while expanding existing payment options. They also expect to deploy new automation mechanisms to speed up the payment process.

“Digital currencies create payment instruments for financial inclusion, expand options for fast, secure, efficient and interoperable payments in the economy, and provide (existing) payment instruments such as automation mechanisms and programmability. We are trying to implement complementary features. And innovation. “

This will delay the previous schedule shared by the central bank a bit. December 31, 2021, Crypto Potato report The country had 2024 in mind as the year to launch the CBDC. However, the announcement shows the idea that the Mexican CBDC can support more services than just the transfer of value.

Bank of Mexico is thinking about cryptocurrency regulation

Mexican President Manuel Lopez Obrador exclude With the possibility of adopting Bitcoin or any cryptocurrency as the legal tender of Mexico, the central bank of Mexico is now seeking to provide greater legality through regulation.

According to Rodriguez, Banxico and other central banking groups are not protected or regulated by the Bank of Mexico, so they are considering the possibility of restricting the use of cryptocurrencies domestically to protect citizens when conducting transactions. It is said that it is doing.

“”[Several] A central banking group with Banxico is considering this issue [of regulation] This is to further protect the people who participate in the financial system. “

This means that even though Mexico has launched its own digital currency (very different from cryptocurrencies), the country does not want to be left behind in terms of the broader crypto industry regulations. This also helps the government collect more taxes. As it happens in other countries such as Spain, the United States and Brazil.

CBDC is not a cryptocurrency

The Governor of the Bank of Mexico has revealed the bank’s favorable position over future regulations in the crypto industry. However, she emphasized that cryptocurrencies are very different from the CBDC because they are decentralized and give citizens complete control over their money.

However, she stated that the advantage of the CBDC is that it is government-backed, as the CBDC is just a digital representation of the fiat money we all know and use.

Meanwhile, she added, the new CBDC is not a replacement for traditional currencies and banknotes in circulation. Still, it will be a strategic alternative to current payment methods.

The Bank of Mexico is working closely with the Bank for International Settlements to develop the CBDC. But the road is not easy. There is a lot of work to do in the future. recently, Senator Probitcoin Indira Ken Pith Introducing a bill Incorporate the CBDC into the legal system, paving the way for successful implementation.