The Brazilian central bank has issued guidelines regarding its Cryptocurrency Central Bank Digital Currency (CBDC), which is currently in the development stage. The central bank has said that any CBDC must be legal tender and be fully backed by bank reserves. The central bank will also be the sole entity that issues the CBDC and will control it.
Central Bank of Brazil Issues Guidelines for Its CBDC – Bitcoin News The Central Bank of Brazil has recently issued guidelines for its bank-issued digital cash, the Central Bank Digital Currency (CBDC), in order to help ensure the security of the transaction. The bank’s president, Ilan Goldfajn, stated: “We want to ensure the safety of the CBDC. We want to ensure that the keys are not accessible to the public or even to the bank.”
Brazil’s central bank today announced that it will no longer allow financial institutions under its regulatory umbrella to use its foreign reserves for buying bitcoin. Speaking at a conference in Rio de Janeiro, Henrique Meirelles, managing director of the state-run central bank, said that the bank’s reserves could be used only for the purpose of stabilizing the local real, at the very most.. Read more about cbdc meaning and let us know what you think.The Central Bank of Brazil, the country’s main monetary authority, has released a note with general recommendations for the development of a hypothetical central bank digital currency (CBDC) for the country. Although no concrete steps have yet been taken in this direction, the document at least acknowledges that this possibility has been discussed within the institution.
The central bank of Brazil issues general guidance CBDC
The Central Bank of Brazil, the economic authority of the South American country, has published a document outlining the general principles of the future Central Bank of Brazil (CBDC) digital currency. The note, entitled Banco Central do Brasil releases general guidance for the Brazilian CBDC, describes in detail the features and characteristics of a hypothetical CBDC issued by the institution in the future. Among the attributes listed in the document, in addition to mentioning its use as a substitute for money, compliance with anti-money laundering and anti-terrorism regulations, and issuance by the same bank, are other more interesting attributes. First, the bank informs us that the coin will be illustrated: Compliance with all the principles and rules on confidentiality and security, as defined in particular by the law on banking secrecy and the general law on the protection of personal data (LGPD); As an essential part of money. CBDCs have been criticized for the total control issuers can have over their users’ issuance information and personal data, so the bank faced similar criticism early on. Another important specification mentioned by the bank is linking its currency to smart contracts. The document also states that the coin : Focus on developing innovative business models based on technological advances, such as smart contracts, the Internet of Things (IoT) and programmable currency ; This could make the future currency compatible with smart money features. This initiative by BDCE is part of a program called Agenda BC#, an initiative by the bank to modernize some of its operations, including fintech startups in the banking sector and the introduction of some sandbox rules. However, this is only a first draft and the Bank recognizes that it may evolve in the future, with some items being added to or removed from this list once a more open dialogue with the private sectors of Brazilian society has been established.
CBDC research not as widespread in Latin America
The Central Bank of Brazil was one of the pioneers in developing and publishing guidelines for its CBDC on the continent. Most countries in the region have not expressed interest in introducing this type of currency on their territory. The Bahamas, an island nation, on the other hand, is about to introduce Sand Dollar, their own CBDC. In addition, China is already using its own CBDC for cryptocurrency payments, with 3 million transactions worth more than 1 billion yuan made last year. What do you think of Centra Bank of Brazil’s progress on CBDC? Tell us what you think in the comments section below. Photo credit: Shutterstock, Pixabay, Wiki CommonsOne of the most important events for the cryptocurrency industry occurred last week as the Central Bank of Brazil published its guidelines on the legal status of bitcoin, which is now considered a financial instrument as per the National Monetary Council (CNB). The CBDC issued by the CBBC includes the following guidelines: · It is not a security and the use of bitcoin is not restricted; · There is no need to formally register the acquisition or transfer of bitcoin; · The use of bitcoin is not restricted and it can be used in any transaction; · The use of bitcoin is not restricted and it can be used for the purchase of goods and services; · The investment of funds must not exceed US $ 5,000; · The minimum value of the investment cannot exceed. Read more about future of cryptocurrency 2021 and let us know what you think.
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