The emErgence of new digital economic systems has pushed the Brazil Central Bank to launch a new immediate fee system, PIX. This launch comes in response to the growing demand for Bitcoin and other digital currencies. According to the bank president, Roberto Campos Neto, it is set to revolutionize how the country interacts with money.
Brazil Adopts To Growing Demand
A majority of countries have outdated monetary systems and policies. In the past, these very systems and policies have failed to lead to the major economic downfall. This is exactly what led to the creation of Bitcoin. Now Brazil has identified this through the rise of cryptocurrencies.
Central Bank president, Neto, noted this about the growing demand for cryptocurrencies and why they sort to launch PIX.
“Pix came from a need for people to have a payment instrument that is both cheap, fast, transparent and secure. If we think about what has happened in terms of the creation of bitcoins, cryptocurrencies, and other encrypted assets, it comes from the need to have an instrument with such characteristics ”,
His statement is accurate. Bitcoin and other cryptocurrencies have risen because they have ensured cheap fees, transparency, and security. However, although PIX will carry all these characteristics, it will still be far from Bitcoin since it will be owned by the state.
As Simple As Chatting
The system will be provided by banks and be available to all citizens, establishments, and brokers. The Central Bank has stated that it wants the system to be as simple to use as possible (like chatting). Using digital wallets, the system will allow for a fee to be sent between recipient and payer without any third party. This will make it easy to pay for goods and services without the need for physical money.
The director of the Bank’s Financial System and Resolution Organization, João Manoel Pinho de Mello noted,
“The settlement of the transaction will be done in up to 10 seconds and it will be possible to do it 24 hours a day, seven days a week and 365 days a year”,
Melo has further explained how the new system will work noting that it will be via QR Codes, typing on the address, connecting cell telephones and others. The payer will be able to connect with the recipient before completing the transfer. The two will be able to confirm the transaction by monitoring each other’s data before completing it.
With the latest update, it is clear that cryptocurrencies continue to shake the established order in the financial industry.