Brazil Central Bank launches an instant payment system to compete with cryptocurrencies

Brazil's central bank is set to launch an instant, 24/7 payment system activated via QR codes.

Announcing the news on Wednesday, the central bank said the system – called “PIX”, will start operating in November this year. PIX allows users to send and receive money instantly via mobile phones.

“PIX will help make transactions faster and easier – either via QR codes or by entering simple information such as phone numbers, emails or taxpayer identification,” the bank said.

PIX

Central banking and payment institutions licensed by the central bank – owning more than 500,000 active customer accounts, will be required to participate in PIX, according to the notice. “These organizations must provide their customers with all the functionality to get started and receive payments immediately.”

Notably, PIX is a “centralized” payment infrastructure and will be operated and managed by the central bank.

PIX is said to be a competitor to cryptocurrencies. “If we think about what happened to create Bitcoin, cryptocurrencies and other crypto assets, then PIX comes from the need to have such a proprietary tool,” Roberto Campos Neto, president of Brazil's central bank, spoke and was quoted by crypto news site Livecoins in a report on Wednesday.

The Federal Reserve (Fed) – the central bank of the United States, is also developing a real-time settlement and settlement service, 24/7, with expected release dates in 2023 or 2024.

The European Commission is also planning to build an improved instant payment system by the end of 2021, a move aimed at reducing the dominance of U.S. payment giants across the continent. Europe already has an instant payment system called TIPS (Target Instant Payment Settlement), but banks have not been actively involved and so far, TIPS has not been effective.

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According to The Block
Translated by ToiYeuBitcoin

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