News
Cryptocurrencies: Bitcoin is on the rise but the future of money is elsewhere
A new form of digital currency is going viral, capturing tens of millions of users, billions of transactions and the attention of global central banks. No, not Bitcoin, which soared above $69,000 on Tuesday and set a new record for the first time since November 2021. Instead, I’m talking about Brazil’s cheap instant payment system, Pix. And the latter may well have a better claim to indicating the future than cryptocurrency.
Launched in 2020, the initial idea behind Pix – as with all good fintech solutions – was to increase financial inclusion, loosen the grip of a concentrated banking system and make payments faster and more efficient. Its success has been remarkable: it has been used by 160 million people, or 80% of Brazil’s adult population, as well as 13 million businesses, and now surpasses credit and debit cards as the preferred payment method from the country. The plan is to take it global at a time when central banks are experimenting with overhauls of payments and digital currencies to keep technological disruption in check.