The largest country in Latin America may soon have its Central Bank Digital Currency (CBDC) because the Central Bank of Brazil is taking steps to establish this currency. Recently, the president of the Central Bank of Brazil (BCB) hinted that news about the matter might be coming soon.
No decision has been made on whether digital real money will generate interest
In an online debate hosted by Reuters citing the Bank of Spain, Roberto Campos Neto emphasized that the central bank is “making progress” in its plan to digitize the Brazilian real.
He called on central banks around the world to continue discussions on CBDC and deepen their dialogue to further promote the digitalization of the economy:
We have made great progress in the digital currency process, and we should get news as soon as possible.
However, Campos Neto did not specify the progress made by the central bank. He still pointed out that some topics are still brewing, such as whether “digital reality” will arouse people’s interest, and what kind of technology will host CBDC.
Brazil has been studying CBDC since 2020
In general, as more and more Brazilians adopt mobile solutions for this purpose, the use of electronic payments in Brazil is increasing rapidly across the country.
Due to the increasing interest of citizens, the BCB commissioned a research team last year to study CBDC issues to “evaluate the potential benefits and impact of the issuance of Brazilian real in digital format.” The central bank set the following goals:
One of the goals of the research team is to propose a digital currency issuance model that covers risk mapping, including network security, data protection, and regulatory compliance issues, as well as the impact of CBDC on financial inclusion and stability, and currency and currency behavior. analysis. economic policy.
Having said that, the Central Bank of Brazil hopes to assess the feasibility of creating an appropriate environment for the development of “financial citizens” by establishing a CBDC:
In addition to reducing the cost of the currency cycle, the digital currency issued by BCB can also support its strategic goal of “cultivating financial citizenship and strengthening the relationship with society and public power.” In addition to creating monetary policy tools, electronic money can also improve the security of cash handling and custody.
What do you think of the latest remarks made by the governor of the Central Bank of Brazil? Let us know in the comments section below.
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