The federal government officially published the Law for Digital Economy for Digital and Electronic

The federal government officially published the Law for Digital Economy for Digital and Electronic Payments in the Official Gazette of the Federation (DOF) on November 4, 2026, marking a formal shift toward digitizing national financial transactions. The legislation, which entered into force on November 5, 2026, aims to reduce cash dependency by mandating digital payment options across government services and specific economic sectors.

Finance Secretariat Holds Power to Mandate Digital Transactions

The new legal framework comprises 22 articles and five transitional provisions. As reported by El Economista, the law is nearly identical to the original proposal submitted to the Congress of the Union by the executive branch. A primary component of the legislation grants the Secretariat of Finance and Public Credit (SHCP) the authority to designate specific economic sectors and activities where digital payments will serve as the sole authorized method of transaction.

According to Expansión, the SHCP has a 15-business-day window following the law’s enactment to identify these strategic sectors. Once determined, relevant authorities have an additional 15 business days to establish the specific conditions, requirements, and transition timelines for each industry. While the law pushes for a cashless ecosystem, it includes an exception: businesses and public entities may accept cash or checks if technical contingencies prevent the processing of digital payments. However, the legislation stipulates that these exceptions cannot be used repeatedly to bypass compliance with digital requirements.

Integration of Digital Identity and Financial Infrastructure

The law formalizes the use of the Digital CURP and the Digital Citizen File as valid identification for opening bank accounts and requesting financial services remotely. This shift is intended to accelerate financial inclusion by simplifying bureaucratic hurdles. The legislation empowers the Bank of Mexico (Banxico) to regulate sight deposit bank accounts to better align with public needs, while also enabling the National Banking and Securities Commission (CNBV) to standardize technical requirements for QR code payments at point-of-sale terminals.

The reliance on existing infrastructure is central to the strategy. Yahoo reports the initiative uses current systems such as the Interbank Electronic Payment System (SPEI). Consulting firm Capgemini highlighted that Mexico’s existing technological foundation provides a pathway for banks and fintech companies to improve liquidity visibility and fraud detection.

Population Relies Heavily on Cash for Daily Expenditures

The transition faces a significant hurdle: the dominance of physical currency in daily life. Data from the Bank of Mexico, cited by El Economista, shows that as of October 16, 2026, the monetary base reached 3.52 trillion pesos, an annual increase of 237.58 billion pesos. A 2025 study from the central bank published on October 7, 2026, found that 98% of the population still uses cash for daily expenditures. Carlos Serrano Herrera, writing for El Financiero, noted that the National Financial Inclusion Survey (ENIF) estimates that approximately 85% of all economic transactions in the country are conducted in cash.

The legislative move is viewed by some observers as a necessary step to modernize the economy. An economy with less use of cash would have less crime, less corruption, and less tax evasion, in addition to greater productivity, Serrano Herrera wrote in his analysis for El Financiero. The law mandates that the three levels of government—federal, state, and municipal—must now enable the infrastructure required to accept digital and electronic payments for all public services and administrative procedures.

Agencies Use Existing Budgets to Implement Digital Infrastructure

The transition will be implemented using the existing budgets of the corresponding government agencies, with no additional resource allocation authorized by the decree.

The move toward a cashless, digital-first infrastructure represents a long-term shift for the Mexican economy, intended to replace physical handling of currency with traceable, immediate electronic transfers.