Central Banks, the Monetary System and Public Payment Infrastructures: Lessons from Brazil's Pix

Duarte, Angelo José Mont'Alverne; Frost, Jon; Gambacorta, Leonardo; Wilkens, Priscilla Koo; Shin, Hyun Song

doi:10.2139/ssrn.4064528

Cited by 17 publications

(10 citation statements)

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“…112 Contrary to other payment schemes owned and managed by private institutions like Visa and Mastercard, Pix was created and is owned and managed by the BCB. 113 The BCB alone sets and enforces the rules and technical specifications for payment services processed via Pix 114 and has the sole authority to admit Pix participants based on the criteria it established. 115 To use Pix, payors and payees must hold a transaction account, which can be a personal checking account, a savings account, or a payment account.…”

Section: B Central Banks' Mandate To Promote Financial Inclusionmentioning

confidence: 99%

Leading the Way in Pavements: How Central Banks are Using Innovation to Promote Financial Inclusion and Reshape Competition

Bolzani¹

2023

jlc

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Central banks have increasingly embraced their role in advancing financial inclusion besides their more traditional goals of maintaining price and financial stability. To that end, some central banks are using not just rules and regulations but innovation through direct intervention. Pix, the instant payments scheme powered by the Central Bank of Brazil, is a case in point. It illustrates the impact a proactive central bank can have on achieving inclusion and competition in payments while flashing out elements related to the discussion about public and private participation in the payments industry. Pix indicates that central-bank protagonism in payments can be a potent tool to promote inclusion and enhance competition, notably when private actors seem unwilling or incapable of doing so by themselves. However, the legitimacy of central-bank innovative interventions in payments may be questioned if central banks do not have a clear legal authority underpinning and setting the boundaries of their activism. This article thus examines how far central banks can go with their innovative actions without overplaying their hand or displacing private initiative and ingenuity.

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Section: B Central Banks' Mandate To Promote Financial Inclusionmentioning

confidence: 99%

Leading the Way in Pavements: How Central Banks are Using Innovation to Promote Financial Inclusion and Reshape Competition

Bolzani¹

2023

jlc

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“…By mandating the participation of large payment service providers, the BCB addressed market failures, such as a lack of competition in the payment industry. Additionally, to tackle the lack of access to digital financial services, the BCB established a pricing policy with virtually no cost to individuals (Duarte et al, 2022).…”

Section: The Public and Private Collaboration In Paymentsmentioning

confidence: 99%

New age of central banking in emerging markets

Kónya,

Carstens,

Takáts

et al. 2023

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We are here today to award the degree of Doctor Honoris Causa to Dr. Augustin Carstens. Please allow me to briefly explain why Corvinus University found Dr. Carsens, a distinguished scholar, policymaker, and public figure, worthy of the title.Dr. Carstens was born in Mexico, where he obtained his bachelor's degree in economics at the Mexico Autonomous Institute of Technology. He then moved to the United States, where he completed his Ph.D. in Economics at one of the world's leading programs at the University of Chicago. The Chicago Economics Department is famous for its rigorous analytical training and incredible intellectual environment for scholarly and policy discussions. These traits are useful not only in academic research but also in economic policymaking, an area where Dr. Carstens found his calling.After completing the Ph.D., he moved back to his native Mexico, where he started his career at the Central Bank of Mexico. He quickly rose through its ranks, becoming treasurer and then Director General of Economic Research, responsible for steering bank policy after the infamous Tequila Crisis in the mid-1990s. He wrote several influential articles about the impact of the crisis on the Mexican economy.After a three-year role at the International Monetary Fund as a deputy managing director, Dr. Carstens again returned to Mexico and was appointed Secretary of Finance.

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“…50 Similarly, the Eurosystem's instant payments services TIPS has not led to a proliferation of fast retail payments. Brazil's successful launch of "Pix" suggests that regulatory intervention may be a powerful tool in establishing the sufficient network effects required for widespread adoption of such services (Duarte et al, 2022).…”

Section: Regulatory Alternativesmentioning

confidence: 99%