Roberto Campos Neto, the head of Brazil’s central bank, stated on Friday that he thinks credit cards will soon become obsolete owing to the development of open banking and data aggregation, which allows consumers to consent to the sharing of their financial information with various institutions. Since 2021, the central bank has been rolling out its “open finance” concept in stages. Speaking at a cryptocurrency event, Campos Neto predicted that consumers would be able to manage every element of their financial lives through the system rather than having numerous apps from various institutions. This will further enable the creation of cash management solutions for individuals, and give consumers the option of using debit or credit to pay using the PIX quick payment system, the Brazilian central bank’s real-time-payments (RTP) rail.
Brazil’s Central Bank Chief Predicts End of Credit Cards