Pix

And more importantly, it sounds like from both of our perspectives impacts consumers and that is specifically payments and the speed at which funds become available, right? So something I hear a lot and I spend more time than I care to admit on the conference circuit with sort of biz dev, corp dev, VC types, and often bemoaning the state of payments technology in the US and pointing to things like the United Kingdom, which has had faster payments for almost two decades now since 2007, 2008.

Or, more commonly these days, using examples like Brazil with PIX, India with UPI, which I'm sure you're familiar with.

Despite the United States having two, or arguably more in some ways, but two instant payment rails...

Clearinghouse's RTP and FedNow, consumers still struggle to actually access real-time payments.

This article notes that India and Brazil have both developed government-backed payment systems.

India's is called UPI and Brazil's is called PIX.

And they transfer money from account to account without relying on debit or credit cards in local currencies.

So this does two things.

So the merchant has a bank account and you transfer it, and we have this feature directly in the wallet.

And for me, my first time in Brazil, right? So what I realized is PIX payments are actually cheaper in terms of transaction fee and some stores just prefer it, they have discounts.

I don't know of any other way for me to spend in PIX other than using Big Get Wallet, right? So I think there is this inherent thing that, all right, this is a global app, a global wallet, and I can use it anywhere in the world.

Yeah.

So it's like this global product that's localized.

We are seeing massive state-sponsored payment rails taking off globally.

You have PIX in Brazil, UPI in India, and now the FedNow service rolling out in the United States.

Yeah, and the source notes that global A2A transaction volume is projected to jump 160% to $5.8 trillion by 2028.

It's staggering.

You have a long conversion cycle where cash was prevalent and it still is in a lot of economies.

Then you had credit cards, then you had instant payment systems like PIX in Brazil, which is now majority of payments in the country.

I think it's a constant process to get from one to the other.

When you think about the way that a lot of stablecoin founders were thinking, it was very, I would call it even wishful thinking where they would think, okay, stablecoins are better than money and we want this new infrastructure to service the roads and this is the future.

But this new entrance, the folks that are now only Six months into the regulated game, in a pocket demo version, we don't really want them to participate in the same level or with the same liberties.

That's, I think, the general idea from the regulators, at least that's what they take.

So I wanted to ask you, for the people that are listening and don't know what PIX is, can you, in a few sentences, explain what it is and what problem it solves?

Yes.

So there's another question from Jerry.

Say, he, he refers to the Pix, the Brazilian Pix when we're talking about households.

Are there...

You know, the usefulness of the Pix shows how big the advantages are, and can this be translated for stablecoins in other countries which don't have a Pix system? Uh, you know, we had earlier a webinar on Pix with the former governor of the bank.

Yes.

Brazil.

Uh, I think that's a very different structure, and that's a different, um, that's a different system.

So what the Pix does, as I understand it, is, is provide a sort of common infrastructure which is shared by the banks, by the non-banks, by the payment service provider.

[laughs] Yeah.

There's a new one called Pix too that started in Panama.

That comes from Brazil.

Mm.

Um, but that one's starting to pick up steam.

Oh.

Pix?

Yeah, to the point where like United States is like putting some like-

So they are using local instant payment rails.

Brazil has a system called PIX.

Mexico has SPEI.

And Colombia uses PSE.