2025 Public Sector Perspectives

Liza Niño Latin America Platforms & Data Services Clients and Market Integration Head, Treasury & Trade Solutions Montserrat Garrido Latin America Public Sector Sales Head, Treasury & Trade Solutions Driss Temsamani Americas Head of Digital, Treasury & Trade Solutions The Digital Economy and the Key Role of Government Support A shift towards the digital economy T he digital economy is no longer a futuristic concept. Driven by rapid technological advancements, the expansion of the internet, the high increase of smartphone penetration and the digitalization of almost every aspect of society, the resulting hyperconnectivity is transforming the way people, businesses, and institutions engage with each other and conduct transactions. One of the most significant aspects of this change is that the world is witnessing a profound shift towards digital interactions, digital payments, and more broadly, to a digital economy. This transition is not just a convenience, it is a foundational element of the broader digital transformation that is shaping modern economies and societies. The advantages of adopting digital money have been well-articulated and widely known for years, but only as of recent, technological innovation, regulatory initiatives, and shifts in consumer behavior are accelerating preparedness for digital money. In Latin America, this shift holds particular significance. The region, with its diverse economies and varying levels of financial inclusion, stands to benefit immensely from embracing digital payments and moving away from reliance on cash. Digital Money offers tangible advantages and benefits for all. It can streamline government operations, increase tax revenue collection, bring greater transparency, and reduce costs while enhancing institutional efficiency and financial inclusion. For citizens it can offers greater fluidity, convenience and security when acquiring goods and services. Most importantly it offers greater visibility to gain access to services of different nature, promoting financial inclusion for the unbanked and underbanked populations, who have been traditionally excluded from the formal economy. Businesses may benefit from a more efficient collection method and new people accessing the formal economy. Citi Perspectives for the Public Sector 53