The Central Bank of Brazil (BCB) has announced a plan to launch a new near-instant payment system during November.

Cointelegraph Brasil reported on February, 20 that the platform, called the Brazilian Instant Payment Scheme (PIX), will facilitate peer-to-peer and business-to-business organization transactions in x seconds or less via mobile telephone, cyberspace cyberbanking, or select ATMs.

Co-ordinate to a press release published Feb. 20, It is mandatory for all financial and payment institutions licenced by the BCB to provide their 500,000 active client accounts with the functionalities required to facilitate PIX transfers.

The release states that transactions volition exist executed past using a QR Code, or by entering identifying information such equally cell phone number, e-mail or taxpayer identification number.

PIX designed in response to cryptocurrencies

According to local media outlet Livecoin, BCB President Roberto Campos explicitly stated that the platform is intended to compete against distributed ledger-based payment systems while speaking via video-briefing at a launch event in São Paulo:

"Pix came from a demand for people to take a payment instrument that is both cheap, fast, transparent and secure, If we think about what has happened in terms of the cosmos of Bitcoin, cryptocurrencies and other encrypted avails, it comes from the need to accept an instrument with such characteristics."

Campos described the PIX platform as a top priority for the central banking concern during 2022. He added that PIX will be more than efficient and "assist to remove from people this need to have concrete money, equally this generates a cracking price for society."

Speaking to Cointelegraph Brazil, the banking company further stated that cryptocurrency firms will be allowed to join the platform and will experience no restrictions from BCB.

PIX to be used for tax payments

The BCB's website states that the banking company and the National Treasury Secretariat signed an understanding before this month that will see Brazilian citizens able to pay federal taxes using PIX from November 2022.

The release adds that the government intends to issue payments such equally income taxation refunds, social benefits and grants using the platform in hereafter.

João Manoel Pinho de Mello, the director of the Cardinal Bank of Brazil's Financial System and Resolution Arrangement, predicted that PIX will comprise the catalyst for a financial revolution within the country, stating: "Instant payments will bring a major revolution in Brazil along with the other measures that the BC has been taking, open banking, for example."