The chief of the Brazilian Central Bank Roberto Campos Neto predicts the end of credit cards. He believes people will no longer need them in the future with the rise of the Pix open finance system and decentralized payment options involving cryptocurrency.
New-gen financial systems make it simpler for customers to authorize financial data with different institutions. More and more marketplaces support major coins. At the same time, Brazil’s central bank has already launched the first phase of the open finance system implementation back in 2021.
The main mission of the new system is to help consumers keep control over all their finances and life aspects from a single “integrator”. It is a cross-platform and mobile-friendly environment connected and supported via apps developed by major commercial banks.
As a result, a banking network will get specific tools to maintain and develop cash management products for both businesses and individuals. Additionally, consumers will have an option to pay via debit-credit cards or Pix (an instant payment system integrated with the new environment).
In the bottom line, the Brazilian financial ecosystem will get a new platform that eliminates the need of using or having a credit card. What’s more, some commercial banks have already started providing loans and credits via the Pix system.
The system was initially introduced and launched back in 2020 by Brazilian policymakers. It is a real-time payment and money transfer platform that has already been integrated into many financial fields. Additionally, it has been widely adopted by Brazilian consumers.
As a result, the volume of credit and debit cards has been surpassed. As stated by the Brazilian central bank chief, the system has a great potential to expand not only in Latin America. Canada is also showing some interest in using the financial ecosystem.
Campos Neto reserves enough room for crypto to develop. He disapproves of heavy and strict cryptocurrency regulations, especially considering at least 4 huge Brazilian corporations holding around 80% of assets in coins.
On the other hand, experts are well-aware of possible risks when all transactions are concentrated around a single financial system. It is very important to keep a balance with 2-3 platforms holding about 30% of the market each.
The main challenge is to ensure transparent and safe transactions with crypto, especially when it comes to how coins are traded.