Brazil will maintain control of its instant payment system Pix as a public infrastructure operated by the Central Bank, said the bank’s president Gabriel Galipolo, citing its strategic role in the country’s financial system, Reuters reported.
The statement follows a US investigation launched in July into digital trade practices, including Pix’s impact on electronic payments.
Speaking in Rio de Janeiro, Galipolo said the Central Bank’s management of Pix ensures neutrality and security.
“The fact that Pix remains public infrastructure within the central bank turns it into a kind of highway where anyone can drive, as long as they follow the rules of the road,” he said.
Galipolo added that centralised oversight avoids conflicts of interest that would arise if a private entity managed the system. He noted Pix has brought millions of people into the formal financial system and indirectly increased the user base for other payment instruments like credit and debit cards.
Pix currently has 159mn individual users and 15mn business accounts, covering about 90% of Brazil’s population and companies.
Galipolo also called for legal reforms to strengthen the Central Bank’s ability to support innovations like Pix. While Congress considers a constitutional amendment to give it financial autonomy, the government has expressed opposition to the move.
Related Articles
Previ chief exit closes Banco do Brasil reshuffle
João Fukunaga’s resignation as head of Previ concludes the management overhaul at Banco do Brasil’s main subsidiaries initiated in July by CEO Tarciana Medeiros, ... more
Brazil’s Central Bank approves $155.3mn boost for Master group
Brazil’s Central Bank has authorised two capital increases totalling nearly BRL840mn ($155.3mn) for entities linked to Daniel Vorcaro’s Master financial group, which is ... more
Brazil backs exporters hit by US tariffs with $300mn in loans
Brazil’s state development bank BNDES has approved BRL1.6bn ($300mn) in loans to help exporters affected by the US tariff hikes introduced in August, the bank said, ... more