- The Central Bank of Brazil said that it would create its own payments network which offers many of the benefits associated with blockchain-powered platforms, such as speed and transparency
- However, it will not use Ripple, the most famous provider of liquidity to banks in this situation, to achieve this end
- “PIX came from a need for people to have a payment instrument that is both cheap, fast, transparent and secure”, said the president of the bank
Near-instant blockchain-powered payments service Ripple has been overlooked by a major South American central bank as it seeks to develop its own payment network.
The Central Bank of Brazil will instead offer its own payments platform which has online money transfer capabilities which are close to instant.
It will be known as PIX, and it is understood to have a payment turnaround time of just ten seconds.
According to press reports, this will be launched in Q4 of 2020.
The service will be available on point of sale terminals and also on mobile devices.
It is understood that the service will set its fee structure at a low level.
In situations like these, Ripple – which offers its own cryptocurrency called XRP and services designed to enhance liquidity levels within the financial institution – is often approached to add value.
However, it is believed that the Central Bank of Brazil will not do that.
Figures at the bank explained that there would be many diverse methods available when it came to the use of the platform.
One method believed to be on the cards is the QR code, while address keys are also understood to be under consideration.
The President of the Central Bank of Brazil, Roberto Campos Neto, claimed that the service would be “transparent and secure”.
“PIX came from a need for people to have a payment instrument that is both cheap, fast, transparent and secure”, he was quoted as saying.
He also drew a direct link between cryptocurrency and his organisation’s approach to payments technology.
“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”, he added.
Reports suggested that other members of the bank’s team were enthusiastic about the development too.
Joao Manoel Pinho de Mello, who serves as the bank’s director of financial systems and resolution organisation, explained some more about the desired level of ease of use.
"The idea is to make it as easy as chatting in a chat", he said.
He claimed that PIX ought to be offered by the banks to everyone in the market who required it.
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