The Complexities of Financial Inclusion

Two articles recently cast a different light on financial inclusion. The first published by Cash Essentials and written by Manuel A. Bautista-González of Colombia University about cash in Mexico and the second published in the Irish Times. Very different stories but interesting perspectives on using less cash.

Mexico has a financial inclusion plan for 2019 – 2024 which is based on using less cash. The rationale for this is a mixture of wanting to reduce cash use relating to crime, tax evasion, corruption and organised crime and allowing overseas remittances to be returned to Mexico more easily.

The central bank is promoting the use of its digital payment system, Cobro Digital (CoDI) for retail payments and the Ministry of Finance is encouraging digital payment in sectors such as health services and hospitality venues.