Mexico has made progress on its central bank digital currency (CBDC) and plans to launch it in stages. However, the first stage of the CBDC launch plans to use a mobile payment system that is struggling to gain traction.

“The result of this initial phase implies the preparation of a budget that is currently being determined, and will in turn allow establishing a probable date on which said MDBC will be available,” the institution responded in a request for transparency made by El Sol. from Mexico.

Plans for a digital currency were first announced in 2021 and a planned 2024 launch was mentioned at that stage. However, Governor Victoria Rodríguez Ceja has since assumed control of Banco de México, telling her in April 2022 the Mexican Senate to wait a period of three years, or 2025.

Stage one of the CBDC program involves the redevelopment of Cobro Digital (CoDi), a mobile payment system that will be the foundation of Pago Cel. However, CoDi lacks significant traction in Mexico. Our analysis shows that in 2022 CoDi processed an average of 7 million pesos a day or just $365,000 according to central bank statistics, despite its launch in 2019.

CoDi-based CelPay will allow bank transfers using a mobile phone number or other personal identifiers.

Since CoDi is closely tied to institutions, you might plan to make the system more open. That’s a strategy adopted by Brazil’s successful Pix system, as highlighted in a Bank for International Settlements (BIS) report that compared the two platforms.

The second stage of Mexico’s CBDC will involve financial institutions that allow digital currency transfers through the Interbank Electronic Payment System, to which CoDi is linked. And the final stage will support unbanked users.

That is consistent with financial inclusion being the top priority for the CBDC, followed by expanding fast payment options.