Up until this moment, the crypto world has lived in, popular payment method, Pix’s shadow in Brazil. However, to get crypto’s popularity back in the mainstream, Binance, the crypto trading platform, has announced that Pix will now be integrated into its Binance Pay payments solution.
As a result of the partnership between Binance and the Central Bank of Brazil, users will be able to make instant payment and transfers in reais (Brazil’s national currency) using cryptocurrencies to any person or commercial establishment in the country. The value of the digital asset in the user’s wallet is instantly converted to Brazilian reais, and transactions to any Pix-enabled bank account or merchants are completed in seconds.
According to the Central Bank of Brazil, Pix is used by 76.4 per cent of the Brazilian population. More people use it as their preferred payment method, than those using cash (68.9 per cent) or debit cards (69.1 per cent). With over 174 million people and businesses using Pix, and around 5.6 billion transactions taking place per month, the new partnership will extend the accessibility of the service beyond fiat payments and enable more crypto users to use their digital assets in real-world transactions.
“Integrating Pix with Binance Pay marks a revolutionary step forward, combining the speed and accessibility of Brazil’s instant payments system with Binance’s global reach and innovation. This synergy empowers users with real-time, hassle-free transactions, enhancing the cryptocurrency experience and driving financial inclusion to new heights,” said Richard Teng, CEO of Binance.
The next step for crypto in Brazil
Brazil is the sixth largest market in cryptocurrency adoption in the world, with around 17.5 per cent of the population already owning some type of digital asset, according to data from consultancy firm, Triple-A. Recent research conducted by Instituto Locomotiva showed that 42 per cent of Brazilian investors already have exposure to digital assets, a percentage equal to those who invest in investment funds and shares.
Given that Binance supports over 100 cryptocurrencies, this launch will ensure making payments in Brazil is flexible for all and gives people a choice in how they choose to pay. Payments will be processed by Z.ro Bank, a payment institution authorised to operate by the Central Bank of Brazil.
Guilherme Nazar, Binance’s regional vice president for Latin America, said: “This is a significant milestone because it is the first time that Binance Pay has been integrated into a national payment system in the world. It allows our users in Brazil to use their cryptocurrencies for payments at any commercial establishment and to anyone in the national territory, quickly, safely and easily.
“This launch makes cryptocurrencies more accessible and usable in everyday life, and reflects Binance’s commitment to customising its global products to meet the demands of our local users.
“Payments are one of the most obvious uses of cryptocurrencies. The integration of Binance Pay with Pix makes cryptocurrency payments more intuitive and familiar to Brazilians who are already accustomed to the Central Bank system, and consequently boosts the growth of digital asset adoption in the country.”
