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There are a few misunderstandings. The new crypto law (Law 14.478/2022) still requires the Executive branch (recently changed from extreme right to moderate left) to edit a decree nominating the central bank as the regulator in charge. No one knows when (and if) that will happen. I run one of the central bank fintech programs, LIFT Learning, and, as far as I know, they have ZERO interest in regulating crypto currencies (bitcoin, ethereum and the like), considered no much more than speculative gambling. The central bank is pursuing a CBDC, Real Digital.

FIDCs are just debts securitized, not necessarily the bad type. These funds usually don't have the heft to buy loan books from large banks, which have their own funding. They provide opportunity for smaller lenders. Must be emphasized that foreign RETAIL bank presence in Brazil is, with the exception of Santander, a province of local large banking behemoths such as Itau, Bradesco, Banco do Brasil and so on. Foreign banks cannot compete at the retail level with the large local ones. Not for lack of trying. Citibank, ING, HSBC, ABN Amro etc. all tried and left.

The central bank has an innovation agenda, Agenda BC#, which includes payment innovation (Pix, Real Digital) and open finance. Pix may be the best success story. It processes a 100 MILLION transactions PER DAY and is used by most of the population.

If anyone is interested in discussing aspects of the Brazilian financial ecosystem feel free to contact me on LinkedIn.

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This narrative is worth the read! I think there is so much to gain when FinTech leaders like you collaborate with your Brazilian counterparts. The economies are near-the-same, and both populations are youthful. A good read. You've earned a subscriber.

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