It will increase competition in the long run because if you want to open a payments fintech, you don't need to go in every bank or other fintech to do agreements about how your app will communicate with then, you just use the PIX to communicate with everyone.
Europe did the same and it worked.
The Brazilian Central Bank has authority on money transfers, so whatever regulation they want to arbitrarily impose regarding this matter, they can do.
Facebook is a registered company in Brazil, they were going to operate the payments platform through a card processor, etc, so directly or indirectly they are under the authority of the Central Bank.
EDIT: by the way, regular banks and fintechs already have to be a participant in the Central Bank's payments system in order to settle funds. PIX is (also) a 24x7 implementation of the existing electronic money transfer system which only is available on working days.
Maybe when it becomes a champion on that, removing barriers of entry, protectionism, subsidies and it's public companies monopolies, then it can be a fair judge on this issue.
Maybe they should make their government standard good enough that it wins on its own merit then. Imo, the biggest thing this block does is essentially giving the government standard a license be as subpar as they want, because it isn't like a superior non-government standard is even allowed to compete with it anyway.
If companies are people, then companies in many 3rd world countries are children. You don't let adults hit children until they grow to be adults.
There is no competition when network effects take hold and create a de facto monopoly, like with messaging apps.
Great. If that "standard" is something people want, it'll be able to succeed on its own merits, without having to block the competition.
What happens when someone wants to create something new and interesting that isn't supported by the "standard"? What happens when that standard lacks features people actually want? The danger of forcing everything to use a single underlying framework is that you prevent anyone from being able to do better and improve.
Yes, let Facebook and Apple invent their own internet too, with no compatibility between them. Let's also allow Ford / GM to create their own roads exclusively for Ford / GM vehicles. /s
This is not businesses we are talking about, it's public infrastructure. And banking is a public infrastructure.
No, thank you. I am from India, a country that lost its independence and was ruled and looted as a colony by a corporate called the East India Company. I have no faith in or trust in corporates.
In a healthy democracy, Government regulations and standards are a MUST to protect us from the greed of the corporates, and to create a level playing field.
Facebook is an american company and I applaud the wisdom of the Brazil policy makers to make it abide by their country's rules.
International transactions are very regulated in Brazil and certainly not only the Central Bank would be heavy with their hammer, but Receita Federal (tax authority) would also be very interested in this.
When PayPal started operating in Brazil, they had to convert all Brazilian accounts held in USD to BRL, and there are some restrictions on currency exchange operations that accounts registered in other countries don't have.