Central Bank Digital Currency (CBDC) is going to be the future of the digital economy as many countries like South Korea and the United States are planning to launch their CBDCs while China is almost done with launching digital Yuan. As CBDCs are drawing nearer day by day, several crypto exchanges are modifying accordingly to make such services accessible on their platforms, and a few offshore crypto exchanges like Crypto.com, LocalBitcoins, and OKEx have till now embraced Brazilian instant and brisk payment and transaction system named PIX. The instant payment system of PIX is already being admired and appreciated by many offshore companies and now has become the center of attention among cryptocurrency exchanges.
On the 28th of May 2021, a Seychelles-based crypto exchange named OKEx has announced a strategic partnership with CuboPay, well-known for high-growth local payment methods. This collaboration will enable the customer to purchase the stablecoin Tether (USDT) via a Brazilian-based instant and efficient payment system named Pix. Few other rival cryptocurrency exchanges have been inculcating the same PIX payment system to update their payment solutions, and till now, Crypto.com and peer-to-peer trading platform LocalBitcoins have publically announced the partnership with PIX.
Such sort of collaborations started taking place after the 25th of May since BCB (Central Bank of Brazil) broadcasted the fundamental guidelines for the CBDC (Central Bank Digital Currency). After the ongoing global trend of developing CBDCs, few countries are at the initial stages of launching and testing CBDCs, while China is leading on this project.
Brazil is also following the global trend and carving out possible ways, and in doing so, officials have announced the intended programs, which sought the attention of many crypto and financial institutions. In the announcement, it was made clear that the purpose of Brazil behind launching the CBDC is to boost the participation of Brazil in global and regional trade along with extending it as a physical currency and to advance the business model for the sake of payments and transactions across the borders.
Research shows that the Central Bank of Brazil was already looking for possible ways to modernize the payment and transaction sectors across the border, and launching PIX last year in November 2020 was also the initial part of the plan. Moreover, BCB’s president Robert Campos recently shared that the purpose of launching PIX and of supporting CBDC via PIX is to expedite the payment sector across the borders as it would be the future of cryptocurrencies with its unique feature of the interoperable, instant, and efficient payment system.