A recent report by Citi, a global financial institution, has put Brazil at the top of the nations leading the digital money initiatives in Latin America. The report states that Brazil features a combination of factors that ease the adoption of digital money such as government support and digital payment solutions.
Citi: Brazil Leads Advancements In Digital Money In Latin America
According to Citi, a global financial institution, Brazil is Latam’s most advanced country regarding money digitalization processes. A recent report issued by the bank found that the country features a combination of different factors that support this fact including the involvement of government organizations, a multitude of digital payment alternatives, and the willingness of the general population to adopt these.
The report puts Brazil over other countries with high adoption of digital money initiatives, such as Argentina, Chile, Mexico, and Colombia. Another element raised by Citi is that Brazil seems prepared to adopt drex, its upcoming central bank digital currency (CBDC), given the adaptability of its people to these digital initiatives.
Driss Temsamani, Head of Digital for the U.S., Canada, and Latam at Citi, remarked on this factor alongside existing digital finance initiatives like Pix and Open Finance. In an interview with Valor Economico, he stated:
The Brazilian population adopts new technologies and is prepared for what is new. Brazil has built the correct infrastructure, participants moved, innovated, and built solutions, and there was also adoption.
To Temsamani, the importance of tokenization and these alternative finance technologies lies in the possibility of linking the informal economy, which accounts for $25 trillion, with credit and other opportunities. “If we can connect with the traditional financial system, we will not only create efficiency, but also bring new flows, such as deposits, and loans, which can stimulate the economy,” he stresses.
Brazil is only second to Chile in digital money adoption, a trend that will only accelerate according to Temsamani. Citi’s executive stated that physical money “is insecure, costly, and does not align with the business dynamics of the digital era.”
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