Bitcoin Is Up But the Future of Money Lies Elsewhere
FOMO is no match for real utility, as an alternative digital gold rush in Brazil shows.
Maybe he does. But very few others do.
Photographer: David Ryder/Getty Images North AmericaA new form of digital money is going viral, capturing tens of millions of users, billions of transactions and the attention of global central banks. No, not Bitcoin, which climbed above $69,000 on Tuesday and set a fresh record for the first time since November 2021. Instead, I’m talking about Brazil’s cheap instant-payment system Pix. And the latter just might have a better claim to signposting the future than the cryptocurrency.
Launched in 2020, the initial idea behind Pix — as with all good fintech solutions — was to boost financial inclusion, loosen the grip of a concentrated banking system and make payments quicker and more efficient. It’s succeeded at remarkable speed: It’s been used by 160 million people, or 80% of Brazil’s adult population, as well as 13 million firms, and now beats credit and debit cards as the country’s preferred payment method. The plan is to take it global at a time when central banks are experimenting with payment overhauls and digital currencies to keep a grip on tech disruption.