2025 Public Sector Perspectives

Certainly, the journey to drive digital money readiness and adoption has been challenging. The Latin America Digital money index report, published by Citi and Imperial College Business School (2274514_LATAM_Digital_Money_Report. pdf (citibank.com) , identified 5 key pillars that are supporting Latin America countries to move towards Digital money, as a cashless society: • Pillar 1: Government and market support • Pillar 2: Information and communication technology (ICT) infrastructure: • Pillar 3: Financial Market Infrastructure modernization • Pillar 4: Digital money solutions • Pillar 5: Propensity to adopt. In this article we delve deeply into the 1st pillar: Government support to Digital Money readiness . The pivotal role of government public entities in advancing Latin America digital economy By embracing digital money, the countries in the region can unlock new economic opportunities, foster innovation, and ensure that their economies are better equipped to compete in an increasingly digital global marketplace. As Latin America transitions toward a fully digital economy, as a cash less society, the role of government entities is critical in creating the foundation and setting the pace for a thriving, inclusive and secure digital ecosystem. Their role is crucial for enabling and maintaining the Digital Public Infrastructures required to foster economic growth, enhance financial inclusion and improve efficiency and interoperability of digital payments. When considering what to do – and what not to do – and to maximize digital money readiness, it is important to recognize that every country has different circumstances, needs, and levels of financial services maturity. There is no one-size- fits-all model. Nevertheless, there are some broad aspects of successful digital money readiness that should be prioritized by countries. The following are key aspects to cover: By embracing digital money, the countries in the region can unlock new economic opportunities, foster innovation, and ensure that their economies are better equipped to compete in an increasingly digital global marketplace. 54 The Digital Economy and the Key Role of Government Support