The Digital Peso
The Deputy Governor spoke about CBDCs in 2019 –
- Commercial bank deposits by banks could be substituted by CBDCs.
- Private financial sector could reduce lending.
- Financial Instability.
Mexico has now digital services via SPEI and CoDI.
The Deputy Govenor expressed caution in adopting CBDCs in 2019.
Mexico today is cash driven with a high unbanked population.
There are no signs today a CBDC being implemented in Mexico.
His sentiments changed in 2021 when he talked in terms of “when” not “if” –
In this regard, the emergence of proposals involving central bank digital currencies (CBDCs) have led to a stimulating debate on their implementation. The main question is not whether to adopt them or not, but rather to identify the most convenient solution for each jurisdiction based on its needs and considering consumer protection, monetary policy and the most suitable technological architecture.
From these statements: the need exists and the motivation exists.
In any event, while we have to be open and attentive to new technologies, it is also true that we need to be cautious in adopting them, especially when, as in the case of CBDCs, we are dealing with an issue with potential major implications and still many