The Impact of the PIX payment system on the international cryptocurrency market
The coronavirus pandemic has reshaped the world, increasing the importance of cashless payments and accelerating their adoption. The integration of cryptocurrencies into financial activities and the use of digital currencies for payments have set trends for future market development. Companies have needed a payment system that combines fiat money and digital coins, simplifying fund conversion and transfer. PIX has provided these capabilities. Developed by the Central Bank of Brazil, the system operates legally and allows transactions without the risk of being blocked, significantly affecting the international cryptocurrency market and simplifying its operations.
Description of the PIX payment system
PIX is an instant payment system that facilitates quick transfers and cryptocurrency transactions. The state-controlled platform enables seamless transfers of Brazilian reais (BRL) to exchanges and conversion of digital coins into fiat money, effectively legalizing cryptocurrency in Brazil.
Announced in 2019, PIX started operating in November 2020 and quickly gained popularity. It is widely used by Brazilians and international companies and investors for converting cryptocurrency into fiat money through a fast and secure service.
PIX offers several advantages:
High transaction speed: transfers are completed almost instantly.
Security and data protection: risk of information theft is minimal.
Ease of use: no need for ATMs or separate bank accounts, transactions are conducted online.
Minimal fees: no fees for regular users.
Global transactions: supports transfers to over 200 countries.
Open environment and accessibility: available to users who meet the requirements.
Versatility: suitable for most types of payments.
There is no maximum payment limit, though users can set daily or monthly transaction limits for added security against fraud. PIX is integrated into various banking or financial applications, with flexibility in implementation as long as minimum regulatory requirements are met.
Interaction of PIX with cryptocurrencies
PIX simplifies the use of crypto-assets, making them more accessible. The platform allows users to:
Top up cryptocurrency exchange accounts.
Withdraw fiat funds.
Exchange various assets.
The list of features is expanding, making interactions with the system more efficient.
The Central Bank of Brazil aims to provide a convenient, secure, and fast payment tool, reducing costs and the need for physical cash while transitioning fully into the digital space. All market participants, including individuals and legal entities, can use PIX for cryptocurrency transactions. However, direct use of PIX requires:
A CPF or CNPJ number.
An email address.
A phone number.
This requirement can limit access, especially for foreign users. However, third-party exchangers and financial platforms integrated with PIX can facilitate transactions.
Impact of PIX on the international cryptocurrency market
PIX has made the international cryptocurrency market more accessible, eliminating the need for lengthy searches for transfer methods. Payments through PIX are quick and straightforward.
Exchanges, including Coinbase, have integrated PIX to leverage its capabilities. Coinbase partners with Ebanx, allowing 140 million users to access the payment system. This integration is part of a global effort to attract new users and expand opportunities. PIX is gradually adding partners, extending its reach to new customers in various countries.
Conclusion
PIX is a practical system for handling fiat and cryptocurrency transactions, offering instant payments and fund receipt without delays. The system is designed to be as user-friendly as possible. While some users, especially from other countries, may face challenges due to required data, this does not limit PIX's use. Users can access PIX features through exchangers and financial platforms that integrate PIX, allowing quick exchanges and transactions with minimal fees.