Introduction to the People’s Chamber and its Objectives
The People’s Chamber, which is advancing in its authorization process with the Bank of Mexico (Banxico), aims to become a specialized Compensation Chamber in the financial sector for the popular sector. Its objectives include reducing remittance costs and providing technological infrastructure to community financial societies, according to project officials.
Backing and Progress
This effort is driven by the Mexican Association of Social Credit Union Associations (Amucss), with support from the Interledger Foundation, a non-profit organization. The project is expected to begin operations soon, starting with two cooperative societies, and its initial impact will be measured by the number of members. However, more entities are expected to join over time due to its open infrastructure and code nature.
Relevance in the Current Context
The proposal gains even more relevance given the current situation. On May 22, 2025, the U.S. House of Representatives approved a bill known as “One Big Beautiful Bill,” promoted by President Donald Trump. This legislation includes a 3.5% tax on remittances sent by non-U.S. citizens to increase revenue and exert more control over financial flows related to migration.
Breaking Financial Barriers
Briana Marbury, Executive Director of the Interledger Foundation (ILF), emphasized that her organization advocates for an open financial future, similar to today’s internet. She stated that it’s time to connect financial systems to facilitate transactions.
Interledger, like internet transmitting data, transfers financial data such as money. It breaks geographical, platform, and even currency barriers, enabling instant and low-cost payments. Moreover, separating payment from settlement reduces costs for businesses and enhances user experience.
This technology is a crucial solution for individuals living in marginalized communities, some with fewer than 2,500 residents, where financial exclusion persists.
Community Financial Empowerment
Isabel Cruz Hernández, President of Amucss, explained that the project aims to link migrants’ savings with local development. She highlighted that there is a level of connectivity allowing communities and their financial institutions to integrate into the national and global financial system. The closest global market to Mexico is remittances, presenting a significant opportunity for development-oriented financing.
Addressing Local Payment Systems
The People’s Chamber also intends to cater to institutions facilitating remittance receipt in rural areas, particularly those facing difficulties accessing the Electronic Interbank Payments System (SPEI).
Examples include Sociedades Cooperativas de Ahorro y Préstamo (Socaps), Sociedades Financieras Populares (Sofipos), and Sociedades Financieras Comunitarias (Sofincos)—popular financial sector entities facing limitations in connecting to the national banking system due to their smaller scale. This directly impacts communities, preventing remittances from staying and driving local development.
Global Payment Landscape
Marbury elaborated on the current global payment scenario, which also applies to Mexico. The situation is fragmented, even among those with financial access—over a billion people worldwide lack it. Local payment systems rarely connect directly to other countries, forcing reliance on costly intermediaries.
Key Questions and Answers
- What is the People’s Chamber? It’s a specialized Compensation Chamber in the popular financial sector, aiming to reduce remittance costs and provide technological infrastructure for community financial societies.
- Who supports the People’s Chamber? The project is backed by Amucss and Interledger Foundation.
- What challenges does the People’s Chamber address? It tackles financial exclusion in marginalized communities and the lack of direct connections between local payment systems and international networks.
- What are the benefits of the People’s Chamber? It enables faster, safer, and more affordable remittance transfers, fostering local development through community financial empowerment.
