Brazil plans to abandon its existing payment system and launch an instant payment system based on blockchain technology

On the 29th, some media reported that due to inefficiency and high cost, the Central Bank of Brazil has decided to abandon the existing payment system (Ted and Doc), and will start a new payment system in November 2020, and the new payment system. An instant payment system developed based on blockchain technology. It is understood that the Brazilian Central Bank wants to establish contacts with financial institutions registered by more than 120 regulatory agencies, so that it can provide real-time funding to the ultimate beneficiaries in 7×24 hours.

According to Caijing.com and the chain of finance, the Brazilian central bank has been working on the development and application of blockchain technology as early as 2017.

In 2017, the blockchain research team of the Brazilian central bank revealed to reporters that they are resuming cooperation with R3's Corda distributed ledger platform. The main content of the cooperation is that the Brazilian central bank is attempting to use the platform's technology to back up Brazil's financial infrastructure. Specific data and information. In addition, the Brazilian Central Bank is still using the Ethereum platform, JP Morgan's Quorum platform and super-books Fabric platform, and the Corda platform to develop proof of concept (PoCs).

In June of this year, the Central Bank of Brazil officially launched the inter-bank ID blockchain platform by working with IBM to use Hyperledger Fabric. According to reports, the platform has been integrated into Brazil's domestic clearing system, the Brazilian Payment System (SPB), which was launched with the main purpose of using mobile devices to verify digital signatures and prevent financial crimes and unauthorized use of the financial system.

Inquiring about public information shows that in recent years, Brazil has developed rapidly in the field of blockchain. In March of this year, the Global Digital Report published a survey report showing that the proportion of users of Bitcoin and other digital currencies in Brazil has reached the top five in the world. Among Brazilians aged 16 to 64, 8.1% own digital currency, which is above the global average of 5.5%. South Africa ranks first in the world with 10.7% of its users.

In September last year, Brazil completed the first record of the birth information of the baby in the blockchain system in Brazil.

But on the other hand, Brazil has performed poorly on some important tracks.

However, according to public information, so far, the Brazilian central bank has not yet had a specific commercial landing on the cross-border payment of blockchain. Although in November last year, Ripple announced a partnership with a Brazilian bank to develop a new type of cross-border payment method, so far, there has been no public information showing that the cooperation between the two parties has yielded effective results. The blockchain cross-border payment is currently a battleground for the banking and payment industry in the blockchain field, and Brazil has already appeared to be somewhat behind.

On the evening of September 17, there was external news that US financial giant Wells Fargo was developing a cryptocurrency called Wells Fargo Digital Cash (Wellcoin) linked to the US dollar. It is understood that Wellcoin will be the first in Wells Fargo. Running on the blockchain platform, it will initially be piloted for internal settlement of corporate operations. Wells Fargo’s stakeholders said in a press release that Wellcoin will be able to address cross-border payments within its global network.

On September 11, MasterCard and blockchain software provider R3 today announced a strategic partnership that will jointly develop and test a new blockchain cross-border payment solution that will initially focus on linking by MasterCard. The global payment infrastructure supported by the Card Clearing and Settlement Network.

On August 30th, PNC Bank, the top ten lender in the United States, established a partnership with RippleNet. PNC Bank will use the blockchain technology already established by RippleNet to handle international payment services.

In June, VISA announced the launch of a blockchain cross-border payment network called “VISA B2B Connect”. It is understood that the blockchain cross-border payment network can effectively reduce cross-border payment costs. The network currently covers more than 30 trade channels worldwide and is expected to expand to 90 markets by the end of this year.

On February 14th, JPMorgan Chase launched a cryptographic currency “JPM Coin” similar to the stable currency, which is used to realize real-time transaction settlement between customers of wholesale payment business.

In addition, many traditional companies such as Ant Financial, Goldman Sachs, China Merchants Bank, etc. are also actively developing blockchain + cross-border payment commercial landing technology.

Source: Financial Network · Chain Finance