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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: 0.404s | source
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Galatians4_16 ◴[08 Apr 25 12:40 UTC] No.43621046[source]▶
Despite a global move towards a cashless society, 54% of Brazilians now opt for cash withdrawals.¹

2024 has seen a surprising reversal, as cash usage makes an unexpected comeback, defying predictions that the world was moving toward a cashless society. With rising cybersecurity threats, concerns over financial privacy, and economic instability, consumers and businesses are increasingly turning back to physical currency as a preferred transaction method.²

¹) https://www.riotimesonline.com/brazil-news/brazils-shift-bac...

²) https://www.adeptswipe.com/cash-makes-a-shocking-comeback-as...

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guax ◴[08 Apr 25 13:46 UTC] No.43621731[source]▶
I believe it's more related to economic crisis and informal work (tax evasion). Brazil is very cashless for normal transactions.
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1. Galatians4_16 ◴[08 Apr 25 14:45 UTC] No.43622398[source]▶
It's only tax evasion if the activity results reportable income. Just assuming everyone, who does not use your favourite cashless platform, is a criminal, is bad marketing.
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2. guax ◴[08 Apr 25 16:09 UTC] No.43623362[source]▶
There is very little reason why a Business would prefer cash other than have some freedom in how it's reported. This is considering how much of a hassle and risk is involved in having large sums.

There is even less reason why a person would, most people in regular jobs get paid via bank accounts (Brazil even have a special kind with no fees for it). Now informal (non registered and non tax paying) employment is cash heavy: house cleaning, small repairs, produce vendors, etc.

I don't even think is criminal, it's kinda Business as usual in Brazil.

Money usage fell in Brazil, pix is the most used method, 37% of the workers are informal (no formal labour contract). They would mostly not be required to even report because of low income, the evasion in this case is being done by the employer, where they don't pay labour and the social security equivalent.