- Brazil’s Central Bank suspends WhatsApp payment feature in the country
- Brazilians turn to Bitcoin and other digital currencies
- Bitcoin could experience a massive increase in demand due to the decision of Brazil’s Central Bank
Bitcoin News Today – The adoption of Bitcoin and digital currencies is on the rise, and their use cases are also increasing. The recent action of the Central Bank of Brazil might further boost the demand for the digital currency in the country. Recently, Brazil’s central bank blocked payments from the WhatsApp messenger application in the country.
Brazil is the second-largest market for the payment feature of the messaging app, and this will leave an enormous hole that digital currencies could fill.
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Brazil’s Central Banks Blocks WhatsApp Payment Feature
The recent decision of the Central Bank of Brazil to suspend the payment feature of Facebook’s WhatsApp is a move to preserve an adequate competitive environment. WhatsApp is one of the most popular chat applications in the world with inbuilt payment functionality. This feature will no longer work in Brazil because of the sudden decision of the Central Bank.
Authorities have also has asked Visa and MasterCard to stop approving transactions made via the app immediately. The rollout of WhatsApp by Facebook in the country did not even last up to one month before the Central Bank decided to pull the plug. The abrupt suspension for the payment feature will allow the banking authority to consider any risk to the payment system of the country.
According to the Central Bank, the existing system could suffer irreversible damage if WhatsApp is allowed to function without first getting regulatory approval. The banking authority said it is especially concerned with efficiency, data privacy, and competition. It appears that Brazil does not want Facebook Inc. to steal the thunder of its PIX payment system, which is scheduled for launch by November this year.
Bitcoin’s Demand Could Surge Significantly as More Brazilians Turn to It
Brazil was already the second-largest market for WhatsApp payment feature due to the massive population of the country and the insufficient access to traditional banking infrastructure. More than 120 million people are using the payment feature from the region alone. It is dangerous to leave the people without a digital payment means in a time when the COVID-19 cases are increasing.
This is likely to push users in the nation to Bitcoin (BTC) and other digital currencies. Since the beginning of the outbreak, VISA reported a massive increase in first-time digital payments. In some regions of Latin America, the benchmark digital currency is already taking over the place of traditional banking services.
According to data from LocalBitcoin, there is an increasing acceptance of the first-ever digital currency in the country. This could significantly drive the demand for Bitcoin (BTC) and other digital currencies.