Mexican government signals circulation of digital currency by 2024

Mexican government signals circulation of digital currency by 2024

Mexico’s central bank plans to have its own digital currency in circulation by 2024, according to a Dec. 29 tweet from the country's presidency.

“Banxico reports that by 2024 it will have its own digital currency in circulation, considering these new technologies and next-generation payment infrastructure are of the utmost importance as options of great value to advance financial inclusion in the country,” the Spanish-language tweet said.

The announcement is referring to a central bank digital currency (CBDC), and did not mention crypto. On Dec. 27, the Mexican business news outlet EL CEO had quoted Banxico’s Jonathan Heath as mentioning the 2024 timeline for the digital currency in an S&P Dow Jones Indices videoconference.

Mexico’s financial authorities have taken a cautious approach regarding cryptocurrencies, prohibiting financial institutions based there to offer crypto-based products.

In June, Mexico’s central bank reiterated that cryptocurrencies were not legal tender, following a tweet from billionaire Ricardo Salinas Pliego saying that his bank was working to accept Bitcoin. And Mexico’s president, Andrés Manuel López Obrador, said in October that the country was unlikely to make Bitcoin legal tender like El Salvador.

On the other hand, the CEO of Mexico’s stock exchange BMV (Bolsa Mexicana de Valores) said during an Oct. 5 discussion that it had been talking to financial authorities about the possibility of listing crypto-based financial instruments like futures.

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