Brazil Will Only Use Registered Currency Come January 2017

The financial turmoil in Brazil is far from over. The country’s banks have taken new measures to take on the widespread usage of cash in the form of unregistered boletos. Come January 2017, all of the country’s boleto bancarios will need to be registered with a bank, and unregistered currency will be banned forever. This should help increase the level of transparency provided by Brazil’s banking system.

Taking On The Unregistered Currency In Brazil

Brazil is a somewhat different country when it comes to issuing currency right now. Various e-commerce businesses can issue Boleto Express or Boleto Flash currency, which can be used alongside with traditional boletos. However, this “unregistered” currency is not enrolled with an issuing bank, which creates a big problem.

At the same time, it is not surprising to consumers, and enterprises prefer the unregistered boletos. Their registered counterparts are subject to fees, as banks charge a commission for issuance, change, and even cancellation. In a country where it is difficult enough to survive every day, any cost-cutting measures are more than welcome. In this case, the unregistered boletos are a clear favorite.

That situation will begin to change come January 1, 2017. The FEBRABAN and Central Bank of Brazil have issued a new decree which will only permit the usage of registered collectors in the country. PagBrasil, one of the main providers of unregistered boletos, does not see this as a big problem. In fact, they feel confident that the same fee structure can be maintained, which only charges merchants for a successful payment of a registered boleto.

But that is not the only change coming to the financial system in Brazil. As of January 2017, all customers will need to provide their full name, fiscal number, and address to register their boleto supply. This means that companies who used to issue unregistered boletos  will need to step up their KYC procedures.

Although this could be seen as a major hurdle, very little will change for PagBrasil merchants. The company integrated a KYC procedure many years ago, and these new guidelines do not warrant any substantial changes to the process. Additionally, there are some advantages to using only registered boletos.

First of all, the registered boleto is automatically broadcasted over the banking network and deposited into a buyer’s bank account. Since barcodes play no role in the process, payment confirmations are easier. Secondly, merchants can file official complaints regarding unpaid boletos, which should help settle any amounts due in a more speedy fashion.

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