• bitcoinBitcoin$70,827.001.01%
  • ethereumEthereum$3,592.070.27%
  • elrond-erd-2MultiversX$61.22-1.08%

Brazil’s Central Bank President Will Have News on a CBDC “Soon”

Brazil may soon have its very own CBDC, as Roberto Campos Neto, the president of the Banco Central do Brasil (BCB), hinted at the idea of having news regarding this “soon.”

Neto has pointed out that the central bank is “making progress” on the plans to digitalize the Brazilian real. He carried conversations with central banks around the world to discuss CBDCs: “We are making great progress on the digital currency process, and we should have news soon.”

Neto didn’t offer any details regarding the progress, but he mentioned that some ideas are still debated, such as if the “digital real” will be interest-bearing or the type of technology on which the CBDCs will be hosted on.

In general, the largest South American country has registered an increase in electronic payments. As a result, the BCB ordered in 2020 a study group that focused on CBDC to “evaluate the potential benefits and impacts of issuing the Brazilian Real in a digital format.”

The central bank had the following goal:

“Among the study group’s objectives is the proposition of a digital currency issuance model covering risk mapping — including cyber security, data protection, and regulatory compliance issues —, as well as an analysis of CBDC’s impacts on financial inclusion and stability and on the conduct of monetary and economic policies.”

BCB is expecting to assess the feasibility in order to create the needed environment for the creation of a “financial citizenship” as a result of the creation of a CBDC:

“In addition to cost reduction of the money cycle, a digital currency issued by BCB can support its strategic objective of ‘fostering the financial citizenship and strengthen the relationship with society and public powers’. An electronic currency can increase the safety of handling and custody of cash, in addition to creating monetary policy instruments.”

Previous articleNext article

Leave a Reply

Your email address will not be published. Required fields are marked *