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Brazil's government-run payments system has become dominant

(www.economist.com)
666 points jcartw | 2 comments | 08 Apr 25 10:59 UTC | HN request time: 0.397s | source
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SwiftyBug ◴[08 Apr 25 11:48 UTC] No.43620583[source]▶
I've been living in Brazil for the last 20 years.

Pix revolutionised the way we transact in Brazil. I've used Pix to pay for things that cost only cents, and I have a friend who bought her house using Pix. The system just works for any transfer amount. And it's so easy to use.

Its speed is truly baffling, and so is its reliability. Never have I failed to make a Pix payment because of downtime. I never cease to be amazed by how fast money arrives in my Brazilian account when I make a withdrawal directly from my EUR wallet on Wise. I receive a push notification from my Brazilian bank before Wise finishes running the animation of confirmation of withdrawal. It's like magic.

And it's so widespread that nowadays I don't even question whether someone accepts Pix. When I get in a taxi, no matter how old the driver is, it's certain that they take (and prefer) Pix.

I've even had homeless people ask me for Pix instead of change on multiple occasions.

Cryptocurrencies don't stand a chance.

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oulipo ◴[08 Apr 25 11:55 UTC] No.43620630[source]▶
Interestig, but this is also worrying to know that the government now knows exactly what you bought, where, when, and for how much. They can also (if there's a rogue government) create fake transactions to implicate you in things you haven't done
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1. Wilder7977 ◴[08 Apr 25 12:05 UTC] No.43620723[source]▶
There is virtually no difference with a private entity which can be compelled by the government to do the same, plus has its own profit motive which could also create incentive to do it.

There must be a non-repudiation and integrity check to verify transactions (e.g., in Estonia I sign digitally all my transactions), so the latter problem is easier to mitigate.

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2. oulipo ◴[09 Apr 25 08:02 UTC] No.43629890[source]▶
Yes but in a private entity, the government still has to do some work (which is in the public eye) to do it, there can be more whistleblowers, etc

So there would be more safeguards