The rise of digital currencies in Brazil

by Wirba Brice Divine Ransinyuy

The central bank of Brazil has made it clear its desire and its plans to create a new and reformed payment service that will be able to compete adequately with various increasingly popular crypto platforms. Brazil is among the fast developing countries amidst the crisis of coronavirus slowing down the pace of economic and technological development in their country. Like any other developing country, Brazil has the desire and the potentials to become a fast developed country and among the world’s power.

The BCB known as Brazilian Central Bank under the named PIX hopes and desires that the Brazilian project consisting of creating a new payment service is going to facilitate and make payments easy. It is being hoped that payments will take up to 10 seconds than the usual time. More so, with the new payment service taking just 10 minutes, it is equally hoped it shall be done at any time through mobile apps, cash machines and internet banking. With the use of cryptocurrencies, Brazil is aiming higher as for the time; cryptocurrencies like bitcoin have made their way into Brazilian supermarkets, as it is being used in some markets as a payment of payment. This innovation of getting their own national based cryptocurrency will help to fasten the country’s economy to a higher level.

Brazilian Central bank’s president, known as Roberto Campos Neto said the desire of Brazil creating their own national based cryptocurrency has resulted from the increasing popularity of cryptocurrencies like Bitcoin, Ethereum and with some other countries establishing their own home based national cryptocurrency noting a drastic change in their country’s economy and the welfare of their citizens increasing considerably. These positives aspects have prompted the Brazilian Central Bank to also get into action by aiming the creation of their own national based cryptocurrency.

The project entitled PIX has seen the day in Brazil as a result of a mixture of aspects and factors forcing the authorities to put into place PIX. It is a good response to the plea of the citizens in need of better payment services and systems. Due to this, the end result of this plea and need which came from the need of people to have a payment instrument that is relatively cheap, transparent, fast and secure which are the basic layers of all surrounding cryptocurrencies. Brazil being a developing country should serve as an example to other nations, be it countries found in Latin American countries, African countries, Asian countries or countries located in the East part of Europe. The coming of cryptocurrencies has been generally welcomed as a result of the privacy it provides and its great opportunity offering to users to regain financial independence from central banks which is a call to all nations suffering from such limitations and financial slowdown.