Is the end of cash money approaching? In Brazil, unprecedented research indicates that yes

22. Oktober 2020 admin 0 Comments

An unprecedented study shows that the use of physical money in Brazil may be numbered.

The end of cash money is approaching? In Brazil, unpublished research indicates that simNOTÍCIAS

Brazil is still advanced to reduce the use of physical money and to use more and more payment systems and digital transfer of values.

This is what an unprecedented research made by FIS® (NYSE: FIS) points out.

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The study shows that the adoption and use of digital payments has accelerated in the midst of the OVID-19 pandemic and that real-time digital systems are now offering capabilities beyond instantaneous payments.

„The current pandemic has made clear the importance of putting value instantly in the hands of those who need it, whether individuals or corporations,“ says Raja Gopalakrishnan, head of Global Real Time Payments at FIS.

Also according to FIS, the report shows that as real-time payment networks mature, they add value beyond speed.

„With the launch of PIX in the coming months, Brazil is moving to another level in terms of instant payments, matching countries that already have consolidated instant platforms such as China, India and Australia,“ the report said.

The report also reveals that Basil showed the largest annual increase in values transacted through new real-time digital payment trails in the Americas, with an 11% increase.

In addition, in daily transactions, Brazil also had the highest total number, with over 3.8 million transactions per day.

In this line, a recent Visa survey revealed that about 78% of the Brazilian population stopped using physical money in 2020.

The study called ‚Visa Back to Business‘ was conducted with companies and citizens by Visa and Wakefield Research in eight countries.

„Consumers in Brazil and throughout Latin America and the Caribbean have understood that they can buy virtually any product digitally and pick it up via drive-thru, receive it at home or pick it up at the shop,“ said Fernando Pantaleão, vice president of Solutions for Commerce at Visa Brazil.

With Pix, the Central Bank of Brazil wants to leverage the digitalization of the economy in the country and has already been working on the internationalization of the system.

Thus, instead of using the service of the Society for Worldwide Interbank Financial Telecommunication (SWIFT), the citizens of Brazil could send a PIX.

However, according to the Central Bank, the proposal should only be implemented between 2022 and 2023.

„The possibility of you doing a PIX outside Brazil is on the Pix’s evolutionary agenda, but not for next year,“ said João Manoel de Mello, director of Organization of the Financial System of the Central Bank.

Within PIX’s proposal of internationalization, besides sending money to Brazilians in other countries as well, there is the proposal of PIX to act as an „international card“.

Thus, through PIX „international“ it would also be possible to make payments in trips outside the country.

Although the Central Bank has not provided more details about a possible PIX international, the proposal may be in line with the creation of a Digital Central Bank Currency (CBDC) for Brazil.