Brazilian Central Bank presents a new payment method to tackle cryptocurrency

To tackle the benefits of crypto, the Brazilian Central Bank has come up with an alternative near-instant payment system. The platform’s main aim is reducing payment costs.

The new initiative called PIX will enable payment settlements using Internet banking, mobile phones, ATMs and they will only take 10 seconds to complete.

Roberto Campos Neto, who is a president of the Brazilian Central Bank, noted that the primary purpose of PIX is to cater to people’s needs. It is an instrument with high security, transparency and speed. He also mentioned cryptocurrencies and other digital assets, stating that there is a need to have a tool with such characteristics. 

PIX – a brilliant method for micropayments

PIX can be used to execute payments immediately. It can also apply to micropayments and transfer funds, thus making it a beneficial system.

The director of the central bank’s Financial System and Resolution Organization, Joao Manoel Pinho de Mello, declared that the banks would mainly control the platform. Moreover, it will be accessible to all market participants.

PIX is also useful to completely get rid of the need for using real money, resulting in cutting settlement costs.

Mello also added that the operations could be executed through QR codes, mobile numbers and even address keys. With the PIX you will be able to buy a cup of tea, a book at online stores or simply pay utility bills.

PIX will provide 24/7 payments and is scheduled to launch on November 10, 2020. All users in the country will be able to use the service. 

The European Commission is also contemplating the possibility to create an instant payment system by the end of 2021 to challenge the U.S.-based payment giant’s dominance. Europe has already formed an instant system called Target Instant Payment Settlement, though it has not provided a significant influence and banks are reluctant to join the network. 

Why introducing PIX, when you have cryptocurrency?

While cryptocurrency can offer the same benefits as PIX, there is more for you to pay attention. Brazil is known for its harsh requirements on cryptocurrency, and like Russia, it wants to control crypto space as best as possible. Furthermore, PIX will be an alternative for people to replace cryptocurrency as a payment method.

In the meantime, Acesso and Latoex, former Brazilian crypto exchanges were shut down, due to the country’s strict requirements and new tax policy.