Brazil’s central bank chief predicts end of credit cards

BRASILIA (Reuters) -Brazil’s central financial institution chief Roberto Campos Neto on Friday mentioned he believes bank cards will stop to exist quickly because of the development of the open finance system, by way of which purchasers authorize monetary knowledge sharing with totally different establishments.

Open finance is a central financial institution venture that has been carried out in phases since 2021.

Talking at an occasion about cryptocurrencies, Campos Neto projected that, by way of the system, customers will management all facets of their monetary life in a single “integrator” on their cellular, moderately than having many apps from totally different banks.

It will enable the event of money administration merchandise for people and customers to decide on between making funds with the Pix on the spot fee system by debit or credit score, he added.

“This method eliminates the necessity to have a bank card. I believe that bank cards will stop to exist at some point,” mentioned Campos Neto, noting that banks have already began utilizing Pix to supply credit score.

Launched by policymakers in 2020, Pix permits real-time transfers and funds and has been broadly adopted by Brazilians, already surpassing the quantity of credit score and debit card transactions within the nation.

In accordance with Campos Neto, Pix might first increase “not less than” to Latin America. He mentioned Canada has additionally proven curiosity within the system.

CRYPTO

Throughout the occasion, Campos Neto mentioned he disagreed with heavy regulation of crypto belongings, however careworn considerations on custody focus, since 4 firms at present maintain 80% of crypto belongings.

He additionally mentioned he was involved concerning the danger of transaction focus, with “one or two platforms holding 20-30% of the market.”

In accordance with the central financial institution chief, regulators in Brazil need to guarantee cryptocurrencies have transparency in how they’re traded, created and transacted.

(Reporting by Marcela Ayres; Enhancing by Mark Porter and Philippa Fletcher)