Technology was gradually present in our lives, reaching even our monetary relations. In recent years, mainly with the creation of the Pix tool, banknotes have fallen into disuse, which has made electronic options the most preferred among Brazilians. In this way, our society is moving towards a moment in which the money of paper will no longer be used.
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The use of paper money is on the decline
The new ways of carrying out monetary transactions aggravated the decay of banknote money. This was an effect directly linked to the COVID-19 pandemic, which forced banks to create new ways of carrying out financial transactions. The obvious example of this need was the creation of the Pix tool by the Central Bank in February 2020, which changed all payment scenarios and expanded possibilities in commerce.
National Congress plans to reduce the circulation of ballots even more
A Bill aimed at reducing the circulation of paper notes, authored by Deputy Lucas Vergílio, is currently pending in the Chamber of Deputies. If approved, the project will create limits for monetary transactions in bills and checks in banks and establishments. In this way, there will be a stimulus for the transition from the paper monetary model to electronic transactions, progressively reducing the use of paper money in the country.
Central Bank plans to create a digital currency
Currently, the Central Bank of Brazil is studying the creation of an electronic currency, the digital real, by the year 2024. Despite having the same monetary value, it will not be possible to convert banknotes directly into cash.
The new digital currency could completely replace the physical currency, so it will be used to purchases, transactions, payments and investments, making it the preferred form of transactions for population. The Central Bank itself will issue the digital currencies and their distribution will be carried out by the other banks that adopt this electronic system.
The Central Bank alleges that the main benefit brought about by this new form of payment will be to reduce the production of money and the possibility of using this money all over the world, in addition to providing more security, as it reduces the amount of money laundered money.
Still, according to the Central Bank itself, only 3% of the money traded in Brazil is in physical format, while around 9 trillion reais are traded electronically. This data shows the superiority and preference of the new digital platform compared to older monetary models.
