From cybersecurity to cryptocurrencies. From financial inclusion to artificial intelligence tools in the financial environment. The sixth edition of No Money Forum: The End of Cash, organized by EL PAÍS in collaboration with BBVA and Mercado Pago, addressed the current and future challenges of digital and cash transactions in the country. During the day, a group of experts, business people and analysts discussed opportunities in a country where 85% of transactions of less than 500 pesos are still settled in cash.
In the first panel, “Cybersecurity in the Economic Sphere: Threat or Certainty?”, Cybersecurity Manager at IBM in Latin America, Juan Carlos Zevallos, emphasized that hackers now place more value on having user information than just credit card numbers, because with this information From the end user you can plan medium and long-term attacks. “There are already many cybersecurity tools, the problem is the lack of integration. Secondly, it is about creating ecosystems, and thirdly, it is about artificial intelligence to save time and automate tasks,” he explained. The experts agreed on Mexico’s growing interest in protecting its finances, but also warned that the language barrier, due to which most topics are written in English, prevents it from bridging the knowledge gap to better protect itself from potential cyber risks protect.
The high level of interest in security has increased since the emergence of cryptocurrencies as an alternative not only for investing but also for integration into everyday buying and selling transactions. On the analysis table: Cryptocurrencies: Are they the end of cash? The specialists looked at their use and regulation, the penetration of digital media in Mexico – the country is the third largest in the adoption of cryptocurrencies after Brazil and Argentina – the regulatory challenges and the horizon of virtual transactions. Alejandro Mandujano, head of the Mexico and Latin America division of the Government Blockchain Association (GBA), suggested that beyond locking cryptocurrencies, there is a need to set standards that meet both traditional banking and new digital players.
General view of the BBVA Tower auditorium, during one of the “No Money Forum” presentations. Gladys Serrano
In Mexico, a country where just over 32 million people live in informal employment, representing 55% of the labor force, access to credit for small and medium-sized businesses is another challenge. Lisset May Cervantes, sales manager of Kueski Pay, explained that the reality in Mexico is that many people do not have access to credit. Juan José Galnares, president of the mobile transaction system Clip, explained that there is great potential in this market due to the high penetration of smartphones and the use of electronic media among the Mexican population. “A lot of capital and a lot of companies push you to have a card in your hand. “We also have a large afore system, payroll is no longer effective. What is needed is that there are incentives for the user to demand everything digitally. At some point it will happen, you won’t be able to stop it,” he concluded.
Towards the end of the forum, Carlos Serrano, chief economist of BBVA México, explained to the panel on informality and cash management that informality and low bank usage are closely related phenomena in an environment where more than 60% of companies operate informally. Valeria Moy, director general of the Mexican Institute for Competitiveness (Imco), warned that the formality in Mexico needs to be made simpler and cheaper. “You can reduce the use of cash beyond formality or informality at the very moment you start tapping into those sources of cash, even though they are informal, they will not come through a business credit or a business loan.” “The Digitalization is the way to stop using cash,” he said.
What’s coming in the future? Irina Valassi, Vice President of the Customer Solutions Center at Mastercard Mexico, has some clear arguments. From their trenches, in a few years, payment will be improved through biometric technology. However, there is still a long way to go. Pedro Rivas, general director of Mercado Pago in Mexico, acknowledged that cash still plays an important role compared to other means of payment compared to other Latin American countries. “Financial products already exist, there is already a way to consume them, but there is still a lot of work to be done on the messaging around why it is more convenient to use these financial products compared to cash,” he concluded.
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