Brazil’s Central Bank has also surrendered to the crypto world and will have its own blockchain. The organ is developing a platform for payments through the technology, which will allow instant payments without the use of cards. In this way, the payment system will be connected to banks, customers and companies.
Besides being considered faster than traditional systems for remittances, the blockchain can also be considered safer. The blockchain has been widely used in the cryptocurrency ecosystem, and this time a financial institution of the traditional system will incorporate the crypto currency into its configuration.
The total cost for the development of the technology will be R$ 4.3 million. For the maintenance of the blockchain platform, the Central bank must disburse R$ 1.2 million annually.
Brazil’s Central Bank may end current transfer services
The new payment system can restructure the national financial market. With the deployment of the new service, other products should be considered obsolete. Since the blockchain allows remittances to be sent in a few seconds, the Central bank will be able to perform transactions almost instantaneously.
Thus, it is possible that some current money-remittances systems are completely discontinued. For example, transfer services known as (TED) and (DOC), which have high cost and delay to be compensated, should disappear.
Another strong impact will be on credit cards, since the project will allow, in addition to sending remittances, the payment of bills through the platform. The differential is in the process of verifying the transaction, which should occur immediately.
In this way, purchases with credit cards will be replaced by a system that uses the blockchain technology. The big bet is in perfecting the card payment system. Instead of credit cards, users should use their mobile phone to complete their purchases.
+ Read also: Brazil Central Bank acknowledges bitcoin in balance of payments
Brazilians will have a user record in the blockchain
The Central Bank of Brazil has been working in a payment system project via blockchain since 2018. With the launch forecast for about a year, the platform will allow Brazilians to send remittances and pay for accounts in a system that uses the blockchain technology. But how will this integration be made?
There is currently a limited information connection between banks and the Central bank. The compensation of transfers and deposits happens slowly and, in some cases, even manually. Possibly with the new platform, each citizen should have a user name in the new system of the Brazilian government.
This record can be created separately with information that users already have. Or, only with the CPF, it might be able that anyone creates a profile on the new platform which is being developed.