Mexico announced that it will introduce a new central bank digital currency (CBDC) in 2024, according to a post released Thursday. A tweet from an account representing the Mexican presidency stressed that “new technology and next-generation payment infrastructure” will help Mexico become more economically inclusive.
The CBDC plans follow Mexican President Andrés Manuel López Obrador’s recent announcement that Mexico is unlikely to follow in El Salvador’s footsteps and use cryptocurrencies such as Bitcoin (BTC) as legal tender.
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At least two legislators in Mexico have suggested that the country adopt digital assets to lead the “transition to cryptocurrencies and fintech.” Ricardo Salinas Plego, a billionaire and one of the richest people in Mexico, also stated that Banco Azteca would consider adopting cryptocurrency. In a two-minute video, the billionaire recently asked his 957,200 Twitter followers to leave cash and invest in BTC, asking them to retweet and share the message.
Although many people in the public sector and businesses prefer to use cryptocurrencies, in 2020 the country’s authorities reported that cartels were using digital currencies to launder money.
With the growing popularity of cryptocurrencies, it is not surprising that governments around the world, including Mexico, are considering creating a CBDC. According to Cointelegraph, the Central Bank of Indonesia believes that the digital issuance of national currencies can be a valuable weapon in the fight against the growing use of cryptocurrencies.