We do not need crypto, the technology is here and implemented, and bank transfer fees are archaic rent-seeking structures.
Well done Brazil, wake up America.
In the UK we have bank transfers that settle in a maximum of two hours (much less usually, although I do not know whether it is as fast as the Brazilian system on average) and is free for individuals. It seems to be the norm globally. Is Krugman entirely unaware of how the rest of the world works?
The one things he is right about is that we do already have central bank digital currencies. Most currencies exist mostly in digital form (I cannot remember the exact number, but got GBP its well over 90%).
Cash is fungible. And cash in my wallet is not subject to being frozen like a bank account.
One can argue the merits of a digital cash for society. But a crypto-based digital cash is fundamentally different from a digital bank-based payment system.
Now I wish digital payments didn't require a server/ledger connection at all, but I understand that would risk double-spend attacks unless all the computation could be fully trusted, which we can't even guarantee for existing card payments.
None of these are really comparable to Pix, which occupies a different place in the market (although it also covers these use cases). It absorbs almost all P2P payments as well as business payments, where cards and cash were previously dominant.
All my bank transfers are done via SEPA, including those that I do for my business.
Frankly, I could not care less. I just type in or select an IBAN or scan the QR code with IBAN+Name+Comment+Amount+Currency
It simply occupies a different market space and mindshare than Pix.
All of this is possible with Pix.
Bancontact in my case, which is a country-specific payment system.
Amazon knows my IBAN and I authorize the payments through Bancontact.
> Can you do your gym automatic subscription with SEPA?
Yes
> Can you buy stuff on Chrome with Google Pay with SEPA?
Nope, Google Pay only accepts credit cards.
These comments remind me of the infamous Dropbox comment. Pix is identical to SEPA except in all the ways that count to users, which is why it's wildly more popular.
Does it support every bank? It feels for me Bancontact feels like a Visa/Master thing?
The point about Pix is how it was created by the Central Bank. Between person, it's 100% free, no fees at all. Between business, they allow banks to charge a fee, but the cost it's super low, so a few banks don't have fees at all.
Pix it's just a way on how you can transfer money from your bank app.
About Google Pay thing, Google Pay here integrated Pix, by using open bank solution. So Google Pay basically becomes a 3rd party client for your bank, and thus, allows you use Pix with Tap to Pay, or... with every website on Chrome's.
As soon as you copy the Pix Code to pay, it invokes Google Pay, and you can pay seamless, without switching to any app.
And because every website, store, supports Pix... This basically delivered Google Pay to everything.
Many of my subscription services (from webhosting to internet to recurring hospital bills) are done using Sepa Direct Debit (SDD).