Zona de Azar Brazil – Brazil: Banning Pix for Betting Opposes Digital Agenda

Brazil.– October 29, 2024 www.zonadeazar.com Renato Gomes, Director of Financial System Organization and Resolution at the Central Bank (BC), criticized the proposal to ban the use of Pix for online betting payments this Thursday (24).

During an event in Washington, United States, Gomes argued that this ban could hinder the progress of Brazil’s digital agenda.

He stated that this agenda “is providing Brazilians with an affordable and beneficial payment method,” highlighting the advantages Pix offers Brazilian consumers in facilitating daily transactions.

“I think that hindering this agenda and creating operational complications to restrict Pix usage in some expenditures but not others is counterproductive in the end,” emphasized Gomes, addressing the potential challenges of implementing such a restriction.

In his view, controlling Pix usage solely for betting would be a complex and potentially temporary task, as the system offers benefits that extend beyond these specific sectors.

Increase in Credit Line Use for Betting and Pix Usage

The Brazilian Association of Credit Card and Services Companies (Abecs) previously expressed concerns over the increase in credit line usage for betting and the growing use of Pix for these payments.

The association points out that this trend could heighten individual debt risk for some consumers, increasing the number of betting-related transactions and exposure to debt.

Addressing these issues, Gomes clarified that the Central Bank should not directly regulate the betting sector but rather monitor the impact of this sector on financial stability and payment methods.

He emphasized that the institution’s concern should be on preserving the financial system’s stability, rather than the number of bettors or the consequences of using tools like Pix.

Additionally, Gomes reported that the Central Bank is in dialogue with other countries, especially in Latin America, to promote the integration of rapid payment systems.

He commented on the potential for increased connection among these systems, explaining that “some countries have projects for rapid payments and are attempting to develop initiatives similar to Pix, aiming for integration in the future.”

Edited by: @_fonta www.zonadeazar.com