The role of central banks in promoting digital payments in the Americas

Speech by Mr Alexandre Tombini, BIS Chief Representative for the Americas at the BIS, at the Binational Encounter Mexico-Brazil, National Autonomous University of Mexico (UNAM), Mexico City, 28 August 2024. 

In recent years, there has been a significant rise in the adoption of retail fast payment systems (FPS), which have introduced a new level of convenience and efficiency in the retail sector. At the same time, both retail and wholesale central bank digital currencies (CBDCs) have been gaining momentum. Looking ahead, it is important to explore the potential of tokenisation through wholesale CBDCs.

One country that has emerged as a leader in digital payments is Brazil, with the Central Bank of Brazil (BCB) taking notable initiatives. The enactment of Law 12,865 in 2013 laid the foundation for subsequent innovations, and in 2020, the BCB implemented Pix, a fast payment system. This was followed by the introduction of Open Finance in 2021. Additionally, the BCB is actively working on the development of the Brazilian CBDC, known as the digital real or Drex.

In this dynamic landscape, the role of the BIS is pivotal in fostering dialogue and research on digital innovation, particularly within the realm of central banking. The BIS Innovation Hub is at the forefront of several groundbreaking projects, further solidifying its position as a leader in driving digital transformation in the financial sector.