Latin America’s largest country could soon have its own digital currency (CCB), as Brazil’s central bank has taken steps to create it. Recently, the president of Brazil’s central bank (Banco Central do Brasil, BCB) indicated that there may be news on this issue in the near future.
It has not yet been decided whether digital is of real interest.
In an online debate organized by the Bank of Spain and quoted by Reuters, Roberto Campos Neto stressed that the central bank is going ahead with its plans to digitize the Brazilian real.
He encouraged central banks around the world to continue discussions on CDDCs and deepen negotiations to advance the digitization of the economy:
We are making great progress in the digital currency process, and we will have news to report soon.
However, Campos Neto did not provide details on the central bank’s progress. However, he noted that some issues are still developing, for example B. whether digital reality is of interest and what technologies the CBDC will house.
Brazil to study CBDC from 2020
In general, the use of electronic payments in Brazil is increasing dramatically and more and more Brazilians are using mobile solutions for this purpose.
Due to growing public interest, the BCB last year commissioned a research team to study the CBDC issue to assess the potential benefits and consequences of issuing the Brazilian real in digital form. The central bank has set the following target:
The objectives of the research team include proposing a model for digital currency issuance that identifies risks – including cyber security, privacy and regulatory compliance issues – and analyzing the impact of CDDCs on financial inclusion and stability, as well as on the implementation of monetary and economic policies.
Nevertheless, the Central Bank of Brazil expects that with the creation of the CBDC, it will explore the possibility of creating the conditions for the development of financial citizenship:
The digital currency issued by the BCB not only reduces the cost of money circulation, but can also support its strategic objective of developing financial citizenship and strengthening relations with society and government. In addition to creating monetary policy instruments, e-money can also improve the safety of money in circulation and the preservation of money.
What do you think of the last words of the President of the Central Bank of Brazil? Let us know your comments in the section below.
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