SAO PAULO, Brazil: Brazil's central bank chief Roberto Campos Neto has said that he believes credit cards will cease to exist soon due to the growth of the open finance system.
Under the system, a central bank project that has been carried out in phases since 2021 in Brazil, clients can authorize financial data sharing with different institutions.
During a cryptocurrency event, Campos Neto predicted that under the system, rather than having many different banking apps, users can control their entire financial lives in one "integrator" on their mobile phones.
Cash management products for individuals can, therefore, be developed, enabling users to choose between making payments with the Pix instant payment system by debit or credit, he noted, adding, "This system eliminates the need to have a credit card. I think that credit cards will cease to exist at some point soon."
Banks have already started using Pix to offer credit, Neto stressed.
Pix, which was launched in 2020, enables real-time transfers and payments and has been widely adopted by Brazilians, already surpassing the number of credit and debit card transactions.
Pix could first expand "at least" to Latin America, Neto said, adding that Canada has also shown interest in the system.
He also said he disagreed with the need to impose heavy regulations on crypto currencies, but expressed concerns that four companies currently hold 80 percent of crypto assets.
Brazilian regulators aim to ensure transparency in how cryptocurrencies are traded, created and transacted, he noted.