Who is Brazil in the bread line?

For those unfamiliar with this expression, I asked ChatGPT to explain it, and here it is: “The expression “Who is someone in the bread line” is a slang term widely used in informal Portuguese, especially in Brazil, to ironically or even mockingly question someone's importance or relevance in a given context. It conveys the idea that the person mentioned does not have as much importance, authority, or relevance as they might think they have—or as others might assume. It can be used to diminish someone in a humorous or sarcastic way, especially when that person is trying to assert themselves, give too many opinions, or appear more relevant than they actually are.

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For those who think this expression fits Brazil, I’m here to show otherwise. I attended an event this week where the vast majority of participants were from outside Brazil, and my mission was to explain a bit about the Brazilian economy, showing our weaknesses and our strengths—why not? Although I highlighted the weaknesses quite well—after all, they appear much more frequently in the spotlight of our recent news—to my surprise, it was the strengths that caught their eyes, sparking curiosity, questions, and admiration.

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So, today, instead of talking about those macroeconomic variables we are used to looking at, which lately have shown us a less-than-encouraging scenario (inflation, interest rates, fiscal policy, exchange rates...), I decided to present other types of variables that are less famous in econometric models but very well known to the average Brazilian citizen, and which caught the eyes of our foreign colleagues. With that in mind, could it be that we are often our own saboteurs? The ones who, at the end of the day, are always looking at the glass as half-empty instead of also seeing the good things? Something to think about!

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So, let’s talk about digital commerce, banking, and Pix! Three topics that are directly related and can certainly be called a source of Brazilian pride! To give you an idea, Brazil holds a prominent position in the adoption of e-commerce and digital payment methods, which has significantly expanded the reach of businesses in virtually every sector of the economy. This digital transformation has accelerated expressively in recent years, driven by a combination of high internet penetration, mobile connectivity, and the widespread use of instant payment platforms like Pix. This reality is reflected in Brazil's strong standing in global digital retail adoption rankings. Brazil currently holds the third position in this ranking, surpassing all other countries in Latin America (see chart) and trailing only global giants like China and the United States. This highlights not only the maturity of the Brazilian e-commerce ecosystem but also the high willingness of Brazilian consumers to quickly adopt new technologies, platforms, and digital solutions.

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Speaking of banking system maturity, the Brazilian banking system is, without a doubt, a true success story among emerging markets. More than 90% of the Brazilian population has a bank account, a percentage higher than the average observed in other emerging countries, which hovers around 60% (see chart). In addition to being a highly regulated and well-supervised system, the banking sector in Brazil also stands out for its level of technological advancement. An example of this modernization is Pix—an instant, fast, and convenient payment system developed and operated by the Central Bank of Brazil—already well known to Brazilians, but little known to foreigners.

Pix has profoundly transformed the country's payment landscape. Today, Brazil leads Latin America in the adoption of digital banking solutions, while many other countries are still in the early stages of discussing financial system modernization. While several economies still face challenges in digitizing their banking systems, Brazil already operates with a highly digitized, efficient, and secure financial system. Currently, millions of Brazilians use Pix daily—about 70% of the population has a Pix key (see chart), both for personal transfers and retail payments. According to recent data from the Central Bank, Pix has already established itself as the most used payment method in the country, and more than 60% of the Brazilian population uses the system at least once a month. Brazil is now considered a global benchmark in digital financial solutions, and the success of Pix continues to attract the attention of other countries and institutions around the world that seek to understand and, in many cases, replicate the Brazilian model.

With this in mind, how should we actually answer the theme question of this report: “Who is Brazil in the bread line?”. Despite the challenges—such as inflation, high interest rates, and macroeconomic uncertainties—the country has shown strength in areas that are undervalued internally but admired abroad. Brazil is a benchmark in financial inclusion, digital innovation, and banking modernization. We are stronger, more creative, and more relevant than we often imagine. Instead of sabotaging ourselves, how about recognizing that we do, in fact, have a prominent—and well-deserved—place in that line?

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