The Brazilian central bank has instructed Mastercard and Visa to suspend the processing of money transfers on Facebook’s WhatsApp name.
According to the official information shared with Cointelegraph Brazil The Brazilian Central Bank (BC) has taken measures against WhatsApp Pay “to ensure an appropriate competitive environment” and to allow the Central Bank to assess risks proposed by the company for the country’s existing financial sector.
Visa and Mastercard are subject to heavy fines and administrative penalties if the activities are not suspended related to WhatsApp payments.
The bank will assess the risks
The Brazilian Central Bank (BC) has decided to stop operating Facebook WhatsApp Pay within its limits;; He said he was taking steps to “ensure the operation of an interoperable, fast, secure, transparent, open and affordable payment system”. He added that The measure gives the bank time “to assess any risk to the proper functioning of the Brazilian payment system and to check compliance.“”
WhatsApp launched its payment system in Brazil earlier this month after testing it in two emerging markets for two years.. Brazil is the second largest WhatsApp market with more than 120 million users.
WhatsApp plans to integrate with PIX
Even though WhatsApp was acted on quickly, The Brazilian central bank also announced that the payment function is expected to be integrated into PIX, the central bank’s blockchain-like digital payment system, which is about to be launched..
Talking to Bloomberg, A WhatsApp spokesman stated that the company is supporting the PIX project and is planning to integrate it into the digital payment system.. He explained:
“We support the Central Bank’s PIX digital payments project and, together with our partners, are committed to working with the Central Bank to integrate our systems when PIX is available.”
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