Publications

This press article contains some indicators from the point of view of consumers, and public and private companies related to the reduction in the use of cash in Mexico after the pandemic and mentions some of its challenges.

We offer a novel methodology combining high frequency card transaction data from BBVA and point-of-sale data from cash operations registered at convenience stores from Frogtek by Clarity AI to study changes in consumption patterns relative to variations in income, including changes in items consumed and payment channel.

Cash allowed humanity to abandon bartering, but the use of cash also involves significant problems. It facilitates tax evasion, corruption (Mexicans have become accustomed to watching videos in which corrupt politicians accept cash bribes).

Only 0.7% of remittances are sent in cash and kind, 99% are sent by electronic transfers. Most of the remittances in kind and in cash come from documented Mexicans. Undocumented migrants send almost no remittances in cash and kind, since they cannot go back and forth between Mexico and the United States.

Adjustments to the number of employees and branches in the sector continue, despite the deleveraging of the private sector seems to be coming to an end. The sector is feeling the effects of the resolution and sale of Banco Popular in June 2017 and posted after-tax losses of €3.9 billion for the year, although it achieved further improvements in solvency and asset quality.

Following advances in the distributed ledger technology, central banks are assessing the issuance of digital currency. There's a range of possible schemes to adopt depending on which features of cash to hold: universality, anonymity and non-yield bearing. We analyze opportunities and challenges of 4 key schemes, that support a strategy of gradual testing and implementation