Digital payments in South America have grown considerably since 2018

The Bank of Ecuador assured that digital payments have shown a growth of 84 % in annual transaction volume

In a statement issued after the XLI Meeting of Presidents of Central Banks of South America, held in Quito, the Central Bank of Ecuador reported that digital payments in the South American region experienced an impressive growth of 84 % in the annual volume of retail transactions between 2018 and 2022.

During this meeting, the monetary authorities of the region discussed various economic issues, including the impact of the United States monetary policy in South America, the role of central banks in the innovation of payment systems, the estimation of the interest rate neutral and the determining factors of inflation at a global, sectoral and local level.

One of the highlights was the crucial role of payment systems in the region during and after the Covid-19 pandemic. South American central banks have been promoting initiatives to advance regulation and innovation in this field, promoting the creation of instant payment platforms, greater interoperability between participants in the payments’ ecosystem, and financial inclusion.

In addition, the importance of estimating the neutral interest rate and its impact on the economic variables of the countries was discussed, with emphasis on the uncertainty in its estimation and structural changes. The inflationary dynamics in the region were also analyzed, highlighting the influence of local factors in Latin American countries.

Representatives from Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru and Uruguay participated in the meeting and agreed to convene the XLII Meeting in Colombia in the second half of 2024.

In the next edition, research on payment systems and cross-border payments will be delved into, methods for estimating potential gross domestic product in the region will be analyzed, and the determinants of inflation in the region will be explored, with contributions from different central banks.

K. Tovar

Source: Bancaynegocios

(Reference image source: Unsplash+)

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