Bill proposes suspension of instant payments in Brazilian state as crime surges

As crime increases in Brazil, a new bill is proposing the suspension of instant payments system Pix in the state of São Paulo.

If signed into law, the proposals put forward by the São Paulo Legislative Assembly prevent financial services providers and payment institutions from processing payments through Pix until the Brazilian Central Bank introduces mechanisms to ensure consumer safety.

According to the project, the Assembly can vote to revoke the law if he Central Bank presents a technical security report that demonstrates the measures have been implemented. The objective is to prevent situations such as the so-called lightning kidnappings, whereby consumers are forced to make instant transfers to criminals while being held ransom.

Introduced in November 2020 as part of a broader modernisation of the Brazilian financial services environment – which also includes ongoing initiatives such as Open Banking – Pix has more than 104 million registered users and processed more than 1.6 billion transactions since it was introduced.

Around 75% of the transfers carried out via Pix in its first year of operation took place between individuals. According to the Central Bank, the system enabled financial inclusion at a significant scale: around 40 million Brazilians who had never

Read More: https://www.zdnet.com/article/bill-proposes-suspension-of-instant-payments-in-brazilian-state-as-crime-surges/#ftag=RSSbaffb68