By November 2020, Banco Central de Brasil aims to roll out an instant payment platform called Pix, which will use images known as QR codes to process transactions. This system will allow users to connect their accounts at banks or financial technology (fintech) companies to Pix to send and receive money across Brazil instantaneously. This includes the ability to send money to friends, family, governments, utilities and retailers. Among the central bank’s goals with the effort are to reduce the use of cash and support small and medium-sized enterprises, which can benefit from accepting Pix payments for retail sales. For the platform to have a significant impact on financial inclusion, the government will have to convince the public that the Pix is both secure and affordable.
Pix has similarities to CoDi, which the government of Mexico launched in September 2019. CoDi stands for Cobro Digitales, meaning “Digital Payment” in English.
Banco Central de Brasil was established in December 1964 and controls the country’s monetary policy. Its mission is to promote the “efficiency of the national financial system,” including the stability of the Brazilian real’s purchasing power. It does this by monitoring and seeking to influence macroeconomic indicators such as unemployment and inflation rates.
By Ng Chee Meng, Research Associate
Sources and Additional Resources
Contxto article on Pix launch
https://www.contxto.com/en/brazil/central-bank-brazil-launch-payment-application-pix/
Crowdfundinsider article on Pix launch
https://www.crowdfundinsider.com/2020/02/157671-central-bank-of-brazil-to-introduce-instant-payments-platform-pix-in-november-2020/
Contxto article on CoDi launch in Mexico
https://www.contxto.com/en/mexico/banxico-rolls-out-codi-pilot-for-cashless-qr-and-nfc-payments/
Banco Central de Brasil homepage
https://www.bcb.gov.br
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