Private Banks Propose to Help Design Digital Currency in Mexico – Mexico’s private banks want to collaborate with the country’s central bank to develop a new digital currency.
The president of the Mexican Bank Association (ABM) met with the governor of the Bank of Mexico to offer the group of private banks’ assistance in the future development of a national digital currency.
Members of the Mexican Bank Association have expressed an interest in assisting the country’s central bank with the design and issuing of a prospective central bank digital currency (CBDC).
Daniel Becker, the association’s president, met with Victoria Rodrguez Ceja, the governor of the Bank of Mexico, to discuss several key issues connected to making banks more accessible to Mexican citizens.
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Becker had this to say about the meeting:
“If Banxico determines that banking opinion can assist in the development of better elements or a cryptocurrency, you can count on us and the best banking opinion to make it something that provokes and results in a more efficient and strong financial system that reaches more Mexicans.”
Becker also praised the adoption of a digital currency to reduce transaction costs and improve blockchain interoperability.
According to various reports, Mexico is one of the countries with the lowest banking penetration in its community. Many people feel that cryptocurrencies and their entrance into Mexico will help to increase financial inclusion, but the Mexican central bank has yet to make an official declaration on the possibility of issuing a national digital currency.
However, in January, the Mexican presidency’s official account announced the establishment of a digital version of the peso. The institution indicated at the time that the bank had intentions to issue this currency and that the target date for completion was 2024.
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This is why private banks are asking Mexico’s Central Bank to be included in the development of a possible new digital currency.
This would place Mexico in a handful of countries, like China and the Bahamas, that are planning on developing their own digital currency. The European Union is also considering launching its own digital euro, with the European Commission set to begin public discussions in March.