Mexico to Launch its Own Digital Currency by 2024 to Advance Financial Inclusion
Mexico’s government has announced on its official Twitter account that the central bank of Mexico, Banxico, will launch its own digital currency by 2024. The Mexican government stated that Banxico “reports that it will have its own digital currency in circulation by 2024.” The central bank has acknowledged the importance of new technologies and the latest payment infrastructure as “valuable options to advance financial inclusion in the country.” The development of this central bank digital currency (CBDC) aims to open accounts for both banked and unbanked citizens in order to improve financial inclusion.
Banxico Yet to Confirm the Development
Although the Mexican government announced the launch of its own digital currency, Banxico has yet to confirm the development itself. The central bank is legally independent of the government of Mexico. An anonymous senior bank official informed Reuters that the announcement was not official.
The Central Bank of India Reveals its Plans for a Basic Model of CBDC
The Reserve Bank of India (RBI) stated in a recent report that they need to adopt a basic model of CBDC initially and test it comprehensively to minimize its impact on monetary policy and the banking system. The RBI report also highlights that India’s progress in payment systems will be useful in making a state-of-the-art CBDC available to its citizens and financial institutions. The CBDC can offer various benefits such as liquidity, scalability, acceptance, faster settlement, and ease of transactions with anonymity to its users.
Conclusion
Central banks around the world have been looking into developing their own CBDCs. While some countries like China have already launched their own digital yuan, others are still testing their CBDC prototypes. The development of CBDCs aims to provide a safe, secure, and efficient payment system while also improving financial inclusion.
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