The Brazilian central bank is set to launch a near-instant payments system, which is seen as an alternative to tackle the technological benefits of crypto.
As reported by Reuters, the upcoming platform’s main purpose is to reduce the payments cost to the users.
Dubbed PIX, the platform will allow payment settlements around the clock using mobile phones, internet banking, and ATMs, and, per the bank, the settlement will take merely 10 seconds to complete.
Unveiled on Wednesday, the central bank is aiming to launch the platform on November 10.
“PIX came from a need for people to have a payment instrument that is both cheap, fast, transparent and secure,” Roberto Campos Neto, president of the Central Bank of Brazil, stated. “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.”
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Ideal for micropayments
As PIX will settle payments instantly, it can be used to transfer funds as well as for micro-payments, making it practical for day-to-day use.
Joao Manoel Pinho de Mello, director of the central bank’s Financial System and Resolution Organization, also detailed at the launch event that the payments platform will be controlled by banks and made available to all market participants, including payment institutions and businesses.
PIX will also eliminate the need for using physical money, thus significantly cutting settlement costs.
Mello also explained that the transactions could be carried out using multiple methods, including QR codes, address keys, and even mobile numbers.
Meanwhile, two Brazilian crypto exchanges – Acesso and Latoex – shuttered recently following the harsh requirements and pressure created by the country’s newly introduced tax laws.