American economist Paul Krugman published an article on Tuesday (22) in which the Brazilian Pix payment system praises-suggesting that Brazil may have invented the future of money.
Krugman, who won the Nobel Economics in 2008 and is a professor at New York City University, criticizes in his article the approval of a new cryptocurrency legislation. In the text, he states that the so -called “Genius Act”, “paves the way for future fraud and financial crises”.
In questioning an efficient and public alternative, the economist cites Pix, highlighting the possibility of almost instant payments, low transaction costs and the percentage of people who have already joined the tool.
But reflecting on whether Americans could have the same payment system, he is realistic and says no. According to Krugman, the reasons are two: the American financial industry is too powerful to allow the creation of a Central Bank digital currency in the country, and Republicans do not trust a public initiative in place of private technology.
The economist concluded by saying that “other nations can learn from Brazil’s success in developing a digital payment system. But the US will probably remain stuck with a combination of personal interests and crypto fantasies.”
