Renato Gomes, Director of Financial System Organization and Resolution at the Central Bank of Brazil (BC), voiced criticism on Thursday. He opposed the proposed ban on using the instant payment platform Pix for sports betting and online gaming transactions.
Gomes, speaking at an event hosted by HSBC in Washington, DC, argued that restricting Pix payments for certain transactions could lead to unnecessary operational issues.
Gomes has highlighted the effectiveness of Pix. It has become widely adopted for its low-cost and efficient payment capabilities in Brazil. He stated that the thinks 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.
Launched in 2020, the platform allows for instant transfers and payments. It has become essential in the digital payment ecosystem of Brazil, with millions of users relying on it daily.
The proposed restriction comes as the Abecs (Brazilian Association of Credit Card and Services Companies) expressed concern. They are worried about the increasing use of Pix and credit lines for gambling-related transactions.
Abecs has pointed out the risks associated with these rising transactions. However, Gomes emphasized that regulating gambling payments is outside the focus of Central Bank. People have noted that the institution should focus more on broader implications. These include financial stability and the growing number of people participating in gambling activities.
Furthermore, Gomes discussed the possibility of integrating fast payment systems across Latin America, mentioning ongoing talks with neighboring countries.
He indicated that cross-border payment integration could be an important development for Brazil’s financial system in the future. He stated that some countries are working on fast payment projects and attempting to create systems similar to Pix, paving the way for future integration.
