Mexico to Launch CBDC by 2025, Says Bank Governor

[waybesuricata]

Mexico’s Central Bank governor announced before the Mexican Senate, that a CBDC Rollout is expected by 2025.

Victoria Rodriguez, the central bank governor, says that the new sovereign digital currency will introduce more citizens to formal banking. “The digital currency seeks to generate means of payments aimed at financial inclusion, expand options for fast, secure, efficient, and interoperable payments in the economy, and implement complementary functionalities to the (existing) means of payment, such as automation mechanisms, programmability, and innovation,” she said. The central-bank-issued currency would not replace physical notes, but would instead expand the current utility of the country’s currency.

According to Statista, only 38.4% of the Mexican population has a bank account. As the Wall Street Journal reported, the economy depends significantly on paper money for most transactions, which occur in the informal sector of the economy. The informal sector accounted for 22% of the Gross Domestic Product of Mexico in 2020.

The new announcement also indicates that the central bank has become more open to the possibility of regulating digital currencies, according to Rodriguez, with the primary goal of protecting transacting citizens. “[Several] central bank groups, in which Banxico participates, are reviewing this issue [of regulation] so as to further protect those participating in the financial system.”

Source: https://beincrypto.com/mexico-to-launch-cbdc-by-2025-says-bank-governor/