Mexico will launch its own digital currency by 2024

This digital currency will be backed by the Bank of Mexico (Banxico). Not much is known about its development to date.


Mexico has announced that it will have its own digital currency  by 2024.

The announcement was made by the Mexican government through its Twitter account. The currency will be backed by Banco de México, also called Banxico. 

“The Bank of Mexico informs that by 2024 it will have its own digital currency in circulation, considering these new technologies and the next-generation payment infrastructure are extremely important as options of great value to advance financial inclusion in the country,” he says. the publication.

What is a digital currency?

The digital currency can be defined as a type of currency or Internet exchange medium different from the physical (and currency) that has similar properties to natural coins: allows instantaneous transactions and ownership transfer without borders.

It was defined in 2012 by the European Central Bank as “a type of unregulated digital money, which is generally issued and controlled by its developers, and used and accepted among the members of a specific virtual community.”

Both virtual currencies and cryptocurrencies are types of digital currencies. Is a digital currency a cryptocurrency necessarily ? No. For two reasons: they are not necessarily constituted in a blockchain or chains of blocks and because they are usually centralized by an entity.

The Bank of Mexico has seen its concern about launching its own digital currency since mid-2021.

“I think it is essential to hurry to see this. We have been in many conversations in international forums about what is optimal and how we can understand what are the different combinations that can lead us to different central bank digital currencies , but I don’t know if we will have the time to stay and see what is the better solution ”, commented the governor of this agency, Alejandro Díaz de León.

“Virtual assets should not be used to satisfy financial obligations or be handled only as currencies, but (they should) be used as currency for legal use, they should have certain properties for exchange, but I think they fail as a unit value of Inefficient account and payment mechanisms ”, assured the governor of the central bank.

Peru is also on the way to establishing its own digital currency.