December 14, 2024

Cash circulation decreases by R$40 billion per Pix account

2 min read
Cash circulation decreases by R$40 billion per Pix account

Around R$40 billion in cash stopped circulating in Brazil between January and October 2021. This represents a 10.5% decrease compared to the end of 2020, one year after Pix was created. If this amount were placed in the denomination of 100 Brazilian reals, then it would be possible to travel around the world in one and a half trips. Pix, which is completing its first year this week, already has nearly 350 million individual keys registered and moves over R$ 550 billion per month; In a total of about 1 billion transactions.

Cash circulation decreases by R$40 billion per Pix account

Among these billion transactions, the Director of Innovation, Products and Services of the Brazilian Confederation of Banks (Verappan), Leandro Villan, says that between 80% and 90% of the operations that were previously performed have been exchanged for cash. Moreover, the absolute decrease in transactions via TED between November 2020 and September 2021 (from 192 million to 94 million) and DOC or check (from 45 million to 25 million) is negligible compared to the increase in the number of transactions with Pix, from 34 million to 1 billion. Expansion rate is 2959%.

According to Phelan, “Pix can only replace cash transactions. If this data is preserved over time, it will be one of the largest financial inclusion programs that we know.” Februaryan manager says that the comparison with 2020 is still not perfect, as Economie affected by the pandemic crisis. To keep up with families’ demand for money during the pandemic, BC announced in September 2020Manufacturing 450 million cash bonds worth 200 Brazilian riyals.

At that time, the urgent need was emergency assistance of R$600 per month for about 68 million people. This led to a race to withdraw resources. A year later, a large part of the population did not keep any bill of R$200 in their hands. The latest data from BC indicates that only R$84.6 million of R$200 denomination are in circulation.

In the past 12 months through August 2020, cash is up 48%. However, there is currently a 7.1% decline in cash in the 12 months to October 2021. Finally, BC says the use of fiat money is returning to historical patterns after an unusual 2020.

Anyway, do you want to stay informed of everything that is happening in the financial world?

So follow us no youtube channel And on our social networks, like Facebook social networking siteAnd TwitterAnd Twitch NS Instagram. So, you will follow all about digital banks, credit cardsAnd loansAnd financial technology and issues related to the world of finance.

Photo: Vergani Photography / shutterstock.com