Brazil won’t adopt RippleNet or XRP as the Central Bank has announced its own payment network with low fees, fast transactions and huge liquidity. The PIX coin starts off in Q4 2020.
The Brazilian government has decided to implement a new almost instant payment solution, presumably called the PIX coin. It will shine in Q4 2020 via mobile devices and POS terminals, and they have no plans on adding Ripple‘s XRP.
The project was developed by the Central Bank of Brazil and received the name PIX. It will gain confirmation for payment in ten seconds. And it will work via ATMs, online, and through mobile applications as well. Per the Reuters report, local Livecoins journalists found the intel.
CB of Brazil Builds PIX Payment Network without XRP and Ripple Solutions
Roberto Campos Neto, the President of Brasilian Central Bank, says that the new payment instrument arrives after people’s demand. It will make the payments cheaper, according to Roberto:
“PIX came from a need for people to have a payment instrument that is both cheap, fast, transparent and secure. 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”
The payment gateway will start working on November 10, 2020, which is nine months away. This way, the Central Bank wants to destroy the unbelievably unfair transaction costs taken by the current infrastructure. Which is – the cash and the banks.
Reducing the Cost Needed for Physical Money
Although it is the anonymous means of payment, the government wants to lure people to the KYC version of cash. Currently, this is how the banks work, that’s why you can buy illegal stuff with crypto or cash. It’s anonymous, criminals just don’t use bank cards.
The banking system in the country has been seeking an efficient way of getting rid of the slow parts. And such time seems to finally come. The rough future comes here and it takes time to understand the significance of this sole information piece, and then its impact on blockchain and your life. Citizens will be able to buy a cup of coffee, shop online, pay for an apartment – all using this same payment system.
Brazil Doesn’t Like XRP and Other PoS Cryptocurrencies
This is pretty significant that RippleNet is not part of the new system. The Central Bank has decided that government backing should go towards local developers, not foreign companies.
The Central Bank was kind enough to develop its blockchain, without having to rely on any of the PoW/PoS currencies. Those blockchains work thanks to a circle of anonymous people, and even the best PoS solutions like Ripple cannot conquer the hearts of Brazilian finance sharks. Ripple positions itself as the international money transfer system for Central Banks.
Despite this time, they didn’t have the opportunity to jump in. Perhaps, in future – Ripple will lurk within the BCB to find out the keys to its hearts.
Jeff Fawkes is a seasoned investment professional and a crypto analyst covering the blockchain space. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.