Brazil's central bank governor Roberto Campos believes that credit cards will soon cease to exist due to the growth of the open finance system, through which customers allow the exchange of financial data with various institutions, Reuters reports.
Open Finance is a central bank project that has been implemented in phases since 2021.
Speaking at an event about cryptocurrencies, Campos Neto suggested that with the system, users will control all aspects of their financial life in one integrator on their mobile phone, rather than having multiple applications from different banks. This will enable the development of cash management products so that individuals and users can choose between payments with the Pix instant payment system by debit or credit, he added.
Launched in 2020, Pix enables real-time transfers and payments and has become widespread among Brazilians, already surpassing credit and debit card transactions in the country.
Pix could enter at least the Latin American market first, Campos Neto said, noting that Canada has also shown interest in the system.