Renato Gomes, Director of Financial System Organization and Resolution at the Central Bank of Brazil (BC), voiced criticism on Thursday regarding a proposed ban on using the instant payment platform Pix for sports betting and online gaming transactions.
Speaking at an event hosted by HSBC in Washington, D.C., Gomes argued that restricting Pix payments for certain transactions could lead to unnecessary operational issues.
Gomes highlighted the effectiveness of Pix, which has become widely adopted for its low-cost and efficient payment capabilities in Brazil. He stated: “I think that harming this agenda and creating complicated operational problems to prevent the use of Pix for some expenses and not for others is counterproductive in the end.”
The platform, launched in 2020, allows for instant transfers and payments and has become essential in Brazil’s digital payment ecosystem, with millions of users relying on it daily.
The proposed restriction comes as the Brazilian Association of Credit Card and Services Companies (Abecs) expressed concern over the increasing use of Pix and credit lines for gambling-related transactions.
Abecs has pointed out the potential risks associated with these rising transactions, though Gomes emphasized that regulating gambling payments is outside the Central Bank’s focus, noting that the institution should be more concerned with broader implications, such as financial stability and the increasing number of people participating in gambling activities.
Additionally, Gomes discussed the possibility of integrating fast payment systems across Latin America, mentioning ongoing talks with neighboring countries.
“Some countries have projects for fast payments and are trying to create projects similar to Pix so that integration can happen at a later stage,” he stated, indicating that cross-border payment integration could be an important development for Brazil’s financial system in the future.
Meanwhile, President Luiz Inácio Lula da Silva met with the presidents of five major banks and the Brazilian Federation of Banks (Febraban) earlier in the month to discuss the government’s proposals for the operation of online gambling in the country.
The meeting was organized by the Minister of Finance, Fernando Haddad, and also addressed the taxation of large fortunes and the regulation of the tax reform.
Original article: https://www.yogonet.com/international/noticias/2024/10/28/83410-brazilian-central-bank-director-criticizes-proposed-pix-ban-for-online-betting-payments
