Banco Central do Brasil has started testing a new payment network with the promise to offer Brazilians near instant transactions and many new services. Portrayed as a response to Bitcoin, the Pix system will be mandatory for major financial institutions to ensure wide coverage. The project aims to limit the use of paper money and plastic cards to reduce the costs of the national financial system.
Pix to Transfer Money Between Users Within Seconds
Brazil’s new electronic payment system was officially launched during an event at the BCB headquarters in Brasília on Wednesday, Feb. 19. Pix was initially announced in the spring of 2019 but its name was revealed last week by the central bank’s president Roberto Campos Neto who shared details about the system. During an interview with the Brazilian TV channel Globo News, Campos Neto explained:
Instant payment means that you will be able to pay between one person and another, 24 hours a day, seven days a week.
The money will be transferred immediately to the recipient’s account, the banker emphasized. The system will operate automatically through an application that will also support QR code scanning. Brazilians will be able to use it to pay government fees as well thanks to the participation of the National Treasury. Tests began with the launch and will continue throughout the next nine months. Officials hope to open the network to the public on Nov. 16, Portal do Bitcoin reported. Mass adoption is a target for 2021.
According to preliminary estimates, the time Pix is going to need to process a transaction should be less than 10 seconds.