Mexico’s central bank wants private banks to collaborate with it in order to create a new digital currency. Mexican Bank Association’s (ABM) president met with Governor of Mexico to propose the assistance of the group of private banking institutions for the establishment of a digital national currency.
Potential CBDCs are a good opportunity for private banks
Mexican Bank Association members stated that they would help the central bank design and issue a central bank digital currency (CBDC) to aid in their efforts. The president of the association, Daniel Becker, met with the governor of the Bank of Mexico, Victoria Rodríguez Ceja, to review some important factors related to making banks more accessible for Mexican citizens.
Becker spoke out about the meeting:
Banxico can determine that the banking opinion is able to help build better elements and a crypto currency. You can count on us for the best banking opinions so it provokes and has an efficient financial system that reaches more Mexicans.
Becker was also pleased to see a digital currency introduced in order to reduce transaction costs and improve interoperability via blockchain.
Mexico and Crypto
According to multiple reports, Mexico has the lowest level of banking penetration within its region. Although many believe that the introduction of cryptocurrencies in Mexico will improve financial inclusion, the Bank of Mexico is yet to make a statement about the possibility of issuing a national cryptocurrency.
The official account of Mexico’s presidency did however announce that a digital peso was being created back in January. The institution said that it had plans to create this currency, and gave 2024 as the deadline. The Central Bank of Mexico is being approached by private banks to include them in the design phase of the potential digital currency.
Mexico would join a growing list of nations that have their own digital currency, such as China or the Bahamas. The European Union plans to launch its digital euro in March. Consultations for this currency are also planned by the European Commission.
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