Would a New Digital Currency Improve Inclusion in Mexico?
Financial Services attorneys Alejandro Landa Thierry and Aldo González were featured in The Dialogue's Financial Services Advisor discussing the future of digital currency in Mexico. Mexico’s government recently announced the intentions to launch of a central bank digital currency (CBDC) by 2024 in an effort to help advance financial inclusion in the country. Mr. Landa Thierry and Mr. González outline the implications of the new currency on the Mexican banking sector.
"A few consequences of a Mexican CBDC could be cheaper and seamless payment systems for the unbanked population, direct access to central banks and more digital transactions within financial system. If CBDCs grow popular... they could upend the traditional ‘fractional-reserve banking’ models between central banks and commercial banks, and create potential disintermediation of private banks in the supply of money to the public and increased central bank reserves/assets," they said.