Mexico Drafts Law to Create Cash-Free Sectors
A proposed Digital Economy Law would empower Mexico's finance ministry to designate strategic sectors as cash-free and give the central bank new authority to regulate payment apps and terminals.
Mexico's president has submitted a draft Digital Economy Law to Congress to accelerate the country's transition away from cash. The bill, if passed, would grant the Ministry of Finance (SHCP) the power to designate "strategic sectors," such as gas stations or toll roads, where digital payments become the only acceptable form of payment. It would also compel financial institutions to accept new government-issued digital identity credentials for remote customer onboarding and contracting.
The law grants new authority to Banco de México and the financial regulator (CNBV) to oversee the payments market. This includes requiring point-of-sale terminals that accept cards to also accept QR code payments and potentially standardizing the user experience of financial applications. While the bill is a short framework, it mandates a rapid rollout of detailed secondary regulations upon enactment. The SHCP would be required to name the first digital-only sectors within 15 business days, with sectoral regulators issuing operating rules shortly thereafter. Financial institutions, payment processors, and merchants in potentially targeted industries should monitor the bill's progress closely.