Mexico is taking a significant step towards a digital future with the introduction of the new Digital Economy Law, which aims to reduce cash transactions by up to 50%. This move is expected to improve access to credit for many citizens, making daily financial interactions easier and more efficient. According to Juan José Galnares, CEO of Santander’s Openbank México, this law could transform the way Mexicans manage their finances.
However, there are concerns about the rapid implementation of these changes. Galnares warned that the success of the law could lead to unintentional consequences if cash is phased out too quickly. To facilitate a smoother transition, Nitin Prabhu, the global head of Openbank, suggested that the government should initially focus on digitizing payments for public services. He also emphasized making it simpler and more cost-effective for small businesses to adopt digital payment solutions by reducing the fees associated with electronic transactions.
President Claudia Sheinbaum has addressed public concerns surrounding the Digital Economy Law, which emphasizes the importance of maintaining cash as a form of payment during the transition. While the goal is to increase digital transactions, she reassured citizens that cash will not be eliminated entirely. Certain sectors will, however, shift exclusively to digital payments; for example, cash will no longer be accepted at highway tolls and gas stations by the end of this year, aiming to combat fuel theft and smuggling.
In cases where digital payments are temporarily impossible due to unforeseen circumstances, the law still permits cash or checks as payment methods, ensuring that no one is left without options. Yet, challenges remain, particularly in enhancing cybersecurity measures to protect user data and maintain service continuity, as noted by IQSEC, a cybersecurity firm.
Despite these hurdles, the government believes that the advantages of the Digital Economy Law—especially the enhanced access to credit—will positively impact individuals’ financial histories. As people engage in digital transactions, they build a record that can significantly influence loan approvals in the future, thus paving the way for a more financially inclusive society.