Banxico will issue its digital currency in 2024

In 2021 the central banks of different countries discussed the possibility of creating digital currencies (CBDs, with its acronym in English) in the coming years. The Bank of Mexico (Banxico) reported that it will issue its digital currency, called the digital peso, in 2024.

In its official account on the social network Twitter, the federal government published that in “2024 it will have its own digital currency in circulation, considering these new technologies and the latest-generation payment infrastructure as highly valuable options to advance in financial inclusion in the country”.

Recently Alejandro Díaz de León, Governor of Banxico, said that the financial institution has been working on a procedure that allows transactions to be carried out at lower costs.

“It is very important to distinguish that the concept that the Bank has is an extension of the fiduciary money that we use and that allows us to have transactions with agility and opportunity with lower costs, but that does not imply the risks or financial disintermediation that could cause any solution. It is very different that it is not within the same monetary architecture” the governor stressed.

Virtual currencies facilitate online trading

As it will be recalled, the Bank for International Settlements (BIS) has indicated that digital currencies or CBDCs are important for the modernization of finance and to be able to guarantee that large technology companies are not the ones that control these capitals.

Fifty-six central banks of the world and monetary authorities, since last June, are analyzing the possibility and global convenience of creating digital currencies in different countries in a context where trade and many economic activities move to the online world.

In October 2021, the Bahamas was the first country in the world to launch its CBDC baptized as Sand Dollar, while Switzerland and the central bank of France are running a cross-border experiment in Europe, while China has also been running several experiments.

M. Rodríguez

Source: elpais.com