Facebook-owned WhatsApp has been working with its payment service for the last two years. In Brazil, WhatsApp launched its payment service on June 14, but now the service has been banned, although not by the government, but by the Central Bank of Brazil.
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The Central Bank said in a statement that commissioning the service without monetary authority analysis could harm the payment system in the area of competition and data privacy. The Central Bank’s decision is nothing short of a shock for Facebook.
Explain that the number of WhatsApp users in Brazil is more than 120 million i.e. 120 million. As such, Brazil is the second largest market for WhatsApp after India. This decision of the Central Bank will also have an effect on Facebook’s digital currency libra.
At the same time, a WhatsApp spokesperson has said that the company is working with the local partner and the Central Bank to resolve the issue. Earlier on Tuesday, Visa and MasterCard’s operations with WhatsApp were suspended. On this, the Central Bank said that it is mandatory to get approval from the market participants to keep the payment current.
Actually, WhatsApp had launched its service in Brazil without the permission of the Central Bank, which is now suffering. It is also being said in several reports that the Central Bank in Brazil is going to start its payment service Pix with the regulator by the end of this year which will have more than 980 partners.