Mexico’s Institute of Finance Executives, IMEF, has backed a proposal to reduce the use of cash in selected areas of the economy and encourage broader adoption of digital payments.
Víctor Manuel Herrera, head of IMEF’s Economic Studies Committee, said reducing cash transactions could make financial activity easier to track and help authorities address tax evasion and avoidance.
The organization also argues that greater use of electronic payments could improve transaction traceability and reduce some of the security and operational risks associated with handling physical cash.
However, IMEF representative Víctor Manuel Barajas noted that the shift would also require stronger oversight tools across the financial system.
A larger volume of electronic transactions would give Mexico’s tax authority more data to review, increasing the need for systems capable of identifying undeclared income without creating unnecessary compliance burdens for taxpayers.
IMEF has previously noted that cash remains widely used in Mexico and that a broader transition to digital payments would need to be supported by greater financial inclusion, payment interoperability, and adequate technological infrastructure.
Source: Enfoque Noticias
