Cryptocurrencies have long been hailed as the future of money, but so far, much of the hype has centred on speculative investment rather than practical use.
Brazil’s recent partnership between Binance Pay and Pix, however, offers a glimpse of what could be a new chapter: a chance for crypto to become a tool for everyday transactions in an emerging market.
But before we celebrate the convergence of two payment giants, it’s worth asking: is Brazil truly ready for this shift, and can Binance’s innovation be the key to unlocking crypto’s potential in emerging economies?
Brazil has long struggled with economic instability, high inflation, and a financial system that leaves millions unbanked. For those without access to traditional banking, the promise of cryptocurrency has often been an alluring alternative, but only in theory.
Pix, launched by the Central Bank of Brazil in 2020, changed that by making instant, 24/7, low-cost payments available to over 174 million Brazilians. By 2023, Pix was already processing an average of 6 billion transactions per month. According to the survey “Brazilians and their Relationship with Money“, Pix is already used by 76.4% of the Brazilian population, surpassing the use of cash (68.9%) and debit cards (69.1%).
Now, Binance has integrated its payment system, Binance Pay, with Pix, allowing users to instantly convert their cryptocurrencies into Brazilian reais (BRL) and make payments in real time. This partnership promises to make crypto payments a more practical tool for everyday transactions, but it raises an important question: will this integration truly make cryptocurrencies more accessible to ordinary Brazilians, or is it merely another experiment with limited long-term impact?
A step towards financial inclusion, but not without risks
The potential for financial inclusion is clear. Brazil is the 6th-largest market in cryptocurrency adoption in the world, with around 17.5% of the population already owning some type of digital asset, according to data from the Triple-A consultancy. A recent survey conducted by Instituto Locomotiva for Binance showed that 42% of Brazilian investors already have exposure to digital assets, a percentage equal to that of those who own investment funds and stocks.
With the integration of Binance Pay and Pix, cryptocurrencies can now be used for real-world payments, bypassing traditional banking systems and offering faster, lower-cost alternatives. For the unbanked, this could be a step toward economic participation.
However, Brazil’s economic volatility raises concerns. Cryptocurrencies are often seen as a hedge against inflation, but their price fluctuations pose a significant challenge. Bitcoin, for example, can swing dramatically in value from one day to the next.
While Binance Pay offers a simple way to convert digital assets into fiat currency, the inherent volatility of crypto could discourage everyday use. For many, crypto might still be seen more as an investment or speculative asset than as a practical currency for daily spending.
“This is a significant milestone because it is the first time Binance Pay is integrated into a national payment system in the world. this launch makes cryptocurrencies more accessible and usable in everyday life.” – Guilherme Nazar, Binance’s regional vice president for Latin America
What does this mean for payment systems globally?
The Binance-Pix integration is a notable development, not only for Brazil but for the future of payment systems globally. While much of the conversation around cryptocurrencies has focused on Western markets, where financial systems are already well-established, Brazil offers a different perspective.
The country has a large unbanked population, and the need for accessible, fast, and low-cost payment systems is urgent. Pix has already filled that gap to some extent, and now the integration of cryptocurrency provides an opportunity to see how digital assets could be woven into Brazil’s financial fabric.
If this integration proves successful, it could provide a model for other emerging markets in Latin America, Africa, and Southeast Asia—regions where many people still lack access to formal banking. Binance Pay and Pix could show the way forward, allowing these regions to skip over traditional banking infrastructure and adopt digital payment systems that better suit their needs.
