Currently, four legislative bills in Brazil’s House of Representatives aim to phase out the use of physical cash.
These bills advocate for all financial transactions to be solely digital. The demand for physical currency has been dwindling.
The Central Bank’s issuance of new banknotes has decreased by 38% since 2020, coinciding with the introduction of the PIX payment system.
In the previous year, 1.181 billion notes were issued, a figure close to 2016, when 1.161 billion notes were released.
Legislative proposals have been in the pipeline since 2016, initiated by Deputy Gilberto Nascimento (PSD-SP).
His draft calls for an end to the issuance, circulation, and use of physical coins and notes, promoting entirely virtual transactions.
A subsequent 2020 bill proposes immediate discontinuation of R$ 50, R$ 100, and R$ 200 notes, halting any new note production post-legislation.
Another 2020 proposal by Deputy Reginaldo Lopes (PT-MG) supports eradicating cash use.
According to the House News Agency, he opined that technology offers payment solutions without physical cash.
Adopting this would place financial wrongdoers under tighter scrutiny.
A recent 2021 bill was set for review by the Consumer Defense Committee of the House of Representatives, but the proposal’s rapporteur, Vinicius Carvalho (Republicanos-SP), did not attend the session.
Regarding the reduction in banknote issuance, the Central Bank states it isn’t directly attributed to Pix, stressing the need for further technical reviews.
They highlight the main reasons for cash production are demand variations, replacement of worn-out notes, and maintaining safety stocks.
In 2022, over 24 billion Pix transactions were recorded, surpassing debit cards, bills, TED, DOC, and checks, which recorded nearly 21 billion transactions.