Mexico’s central bank has announced that it will launch its own ‘digital currency’ by 2024. The inverted commas appear here for a reason, as CBDC will be very different from bitcoin and other cryptocurrencies. The news was confirmed in an interview by the central bank’s deputy governor, Jonathan Heath.
By creating its own digital currency, Mexico will join the ranks of countries such as China, Sweden, Estonia, Senegal and Ecuador. The first two of these countries are just trying to introduce their own cryptocurrency, while the others have already done so. If this trend continues, who knows whether in a few years’ time every fiat currency will not have its close counterpart in the digital world.
A work schedule has been established
In a recent tweet, the Mexican government announced that Mexico’s central bank will launch its own digital currency: CBDC. Policymakers express hope that the initiative will advance the country’s financial integration.
The news was confirmed by Jonathan Heath, deputy governor of Banco de México, during a press conference organised by S&P Dow Jones Indices. Heath said that work on the project would start soon and that a detailed timetable for the work had already been drawn up. The plan is to be completed by the end of 2024 at the latest.
What is CBDC?
CBDC is fundamentally different from bitcoin and other cryptocurrencies. It is not a decentralised payment network, but the digital equivalent of a fiat money. CBDC currency is therefore centralised, subject to central bank control. This contradicts the fundamental assumptions of systems such as Bitcoin, Ethereum or Ripple.
On the other hand, the Mexican authorities’ decision can be seen as a prelude to broader changes. A few weeks ago, the largest supermarket chain in Mexico – Elektra – introduced the option of making payments via bitcoin. Recently, the media also repeated the words of a famous Mexican businessman, Ricardo Salinas Pliego, who compared BTC to Gold and advised everyone to invest in it as soon as possible.