BIS says that Brazil does not need a CBDC and that Pix already fulfills this role

Source: PortaldoBitcoin Original Title: BIS says that Brazil does not need a CBDC and that Pix already fulfills this role Original Link: Brazil does not need a central bank digital currency (CBDC) to advance the modernization of its payment system. This is the conclusion of the Bank for International Settlements (BIS), which published an extensive study on the competition between different forms of digital money and the impacts of these alternatives on the organization of the global financial market.

The analysis reinforces that countries with efficient instant payment systems, such as Pix in Brazil, are already reaping a large part of the benefits that a CBDC could offer.

In the document titled “Competing Digital Monies”, the researchers analyze three forms of digital money: bank deposits, private tokens from platforms ( such as digital wallets and big techs ), and CBDCs. The study integrates two-sided market theory with payment economics to compare how each form of money affects competition, inclusion, and efficiency.

The BIS concludes that, in practice, CBDCs and interoperable instant payment systems have similar effects on the market. Both increase financial inclusion, stimulate competition among service providers, and elevate social welfare.

One of the central points of the report is the equivalence thesis: according to the authors, a public and efficient payment system, such as Pix, can deliver results very close to those of a CBDC, without needing to create a new type of state currency. “Both options contribute to improving financial inclusion and social welfare, even if they may generate some degree of disintermediation,” the work states.

Another important highlight is the warning about the risk of “walled gardens”, closed ecosystems dominated by private platforms that hinder interoperability and reduce competition. The BIS emphasizes that public systems such as fast payment systems act as instruments to break down these barriers, allowing banks, fintechs, and new providers to compete in the payment market on more level terms.

The study also points out that, contrary to what some policymakers advocate, the introduction of a CBDC is not always the most urgent solution. In countries with strong digital infrastructure and high penetration of electronic means, creating a state digital currency can incur additional costs without generating proportional gains. “In systems where an efficient FPS is already in operation, a CBDC may not be a priority,” says the report.

Furthermore, the authors emphasize that the interoperability promoted by a public system can paradoxically raise the fees charged to merchants by private intermediaries, as the demand for their services becomes less price-sensitive. Still, the overall balance for the economy is positive, with greater inclusion and an increase in the total volume of transactions.