The president of Brazil's Central Bank, Gabriel Galípolo, said on Monday (24) that Pix, the instant payment system run by the bank, has become one of the country's main instruments of financial inclusion, but acknowledged that the credit expansion of recent years has raised the risk of household over-indebtedness. He spoke at the opening of Febraban Tech 2026, a technology event for the financial sector hosted by the Brazilian Federation of Banks (Febraban).

According to a Central Bank study cited by Galípolo, Pix is now used by 148 million individuals, equivalent to 86% of the adult population, and by 12.8 million businesses. At the event, he commented on a Quaest poll that ranked Pix as the most trusted institution in Brazil, with 80% of respondents saying they trust it, ahead of the Catholic Church (76%), the Military Police (75%) and the Armed Forces (70%). "First place as an institution... and the spouse in fifth. That worries me," he joked, according to G1, since 70% of those surveyed said they trust their own spouse.

At the same time, Galípolo warned about the advance of expensive, unsecured credit lines used for consumption and recurring expenses. "You can't be happy because credit grew and then complain that indebtedness grew," he said. In his view, the problem goes beyond the size of the debt and lies in the type of credit taken: "Not every kind of indebtedness is a problem. Buying a house, for example, creates an asset. The problem is when debt is used for something that does not become an asset, especially when it involves high interest rates."

Household debt has kept rising even as the job market improves. Unemployment fell to 5.4% in June, the lowest level for the period, and families' disposable income reached a record R$ 822 billion in May, according to G1. Valor Econômico reported that Galípolo attributed the increase in indebtedness since 2020 to the expansion of credit supply, driven by the banking access brought by Pix, the historically low interest rates of that period and pandemic-era credit support programs, rather than to monetary tightening. His remarks come as sectors of the government and the Workers' Party blame the Central Bank's high interest rates for the population's economic unease despite low unemployment and real wage gains, Valor reported.

Payroll loans and credit cards

Galípolo pointed to private payroll-deductible loans, a credit line for formally employed workers launched in March 2025, as the largest recent driver of household credit growth: the outstanding balance jumped from R$ 41 billion to R$ 102 billion. The Central Bank's Monetary Policy Report also highlights rising delinquency in vehicle financing and non-payroll personal loans.

Credit card figures were another focus of the presentation. Between 2020 and 2024, 37 million Brazilians started using credit cards; the number of users paying interest on card debt rose from 34 million to 52.8 million; the share of income committed to credit cards climbed from 38.5% to 54%; and default rates, already high, jumped from 55% to 64.5%, according to Valor. Galípolo said the Central Bank is reviewing credit card regulation to correct misplaced incentives and promote responsible lending.

In his assessment, the long grace period for full-balance payments and interest-free installments benefit higher-income clients through a cross-subsidy, while financial institutions offset the cost with higher interest charged to low-income customers. He did not detail the measures under study, but mentioned possible macroprudential tools and a look at international experience.