New Fintech Rules will be Imposed by Brazilian Central Bank

Brazil’s central bank is interested in implementing regulations to the FinTech sector to provide support for the industry startups and other firms in engaging and improving the Brazilian nation that is currently suffering from a recession.

As published in the recent report of Reuters, the monetary authority of the country, Banco Central do Brasil (BCB) is planning to put into effect such rules for this year to sustain growth to  FinTech companies and further services available in the Federative Republic of Brazil  

According to Otavio Damaso, the BCB’s Chief of Staff, the advancement of FinTechs and innovative products seems positive for improving the financial system of the country since the economy is experiencing the worst depression.

The economy of Brazil got an 8 percent rate in March 2017 which is lower during December 2014. In the past, the country is known to be one of the fastest growing economies around the globe, then political controversies and mismanagement of funds arise creating jobless 13 million individuals.

During the former years, the traditional financing options caused banks to charge borrowers higher interest rates, this open doors for many fintechs to influence the Latin America’s biggest economy to offer loans at a cheaper price.