The world is currently standing on the brink of an economic revolution. We have finally reached a tipping point where governing bodies all across the globe realize the role that cryptocurrencies will play in shaping the future. How they react to this realization will determine where they stand once the dust settles. Countries that embrace blockchain technology during its early years will get a jump-start on hashing out policies that bring the best aspects of crypto to their people. Brazil, based on its current actions, hopes to be one of these nations.
Ground Zero- The Creation of Pix
Digitizing their infrastructure is not really a new concept for the Brazilian government. In 2020, they created an instant payment service called Pix. This was meant to provide an alternative to traditional banking, and facilitate quick payments and bank-to-bank transfers.
With over 6 billion transactions till date, it is safe to say that Pix was a huge success. People quickly saw the benefits of digital payment over cash transactions. The speed, convenience, and versatility of this medium led to its mass adoption and public acceptance.
While Pix is a step in the right direction, it’s still a very traditional form of digitalization that doesn’t make use of the benefits of blockchains. Transactions were made easier, but they remained subject to government overreach and corporate manipulation. This system still allows banks and payment institutions to freely define merchants' costs both for transfers and receiving funds. So, at the end of the day, Pix didn’t really change how money is handled. It just switched the medium.
A National Crypto Framework
With the unprecedented growth of crypto, countries now realize the rising need to create a framework to address this new technological leap. And that’s exactly what Brazil did in December of 2022. They were one of the first nations to add regulatory clarity to their stance on the matter.
The Brazilian government has officially signed a bill that legalizes the use of cryptocurrencies as a payment method into effect. Moreover, they also plan to launch their own central bank digital currency (CBDC). These steps not only indicate the government’s awareness of the benefits offered by blockchain technology, but also their willingness to invest into a future of widespread crypto usage. By 2024, Brazil seeks to join the ranks of the Bahamas, Nigeria, Eastern Caribbean, and Jamaica as nations with their own CBDCs. It’s only a matter of time till other countries follow suit and pass laws that allow their own citizens to reap the benefits of cryptocurrencies.
The Road to True Decentralization
We here at PyxelChain™ are thrilled to see this thriving international dialogue around cryptocurrencies. While the world gets acclimated to the concept of blockchains, we are preparing to launch Web3/5/X™ tools that will put the power of blockchain in your pocket™, for every single person around the globe. Digitalization is just the first step on the long journey we see ahead of us and, at the end of this road, we envision a world with true decentralization.
Now with nationwide digital currencies and Central Banks with their own coins and tokens, the need for systems like PyxelChain™ is greater than ever before. We refuse the notion that authoritarian hegemony is the only way to provide safety in a blockchain-based tomorrow. That’s why our team is building features such as the WebX Security Bridge™, 4th Factor Authentication™, and Human Readable Smart Contracts™.
Since the safety provided by governing bodies is subject to the whims of those in power, our goal lies in securing the digital ecosystem itself. A person using our Pyxis Wallet will be able to enjoy the convenience of mechanisms such as Brazil’s Pix, while also avoiding the pitfalls of a centralized economic power structure.
Brazil’s budding interest in cryptocurrencies is indicative of a larger global shift in attitudes towards fundamental economic functions. By now, blockchain technology has proven itself to be the next natural step in our digital evolution; the only doubt that remains is in how we should implement it. And like all big questions, this one doesn’t have one easy answer that everyone can agree on.
That’s why the burden now lies on each individual to join the public discourse and help shape their nation’s plans for crypto. The original goal behind decentralization was the democratization of power. As long as we remember that, the inclusion of cryptocurrency in government planning will always be a net positive.