Home
News
- The BCB will need another year to fully implement its new central bank digital currency
- A new instant payment system has been introduced called PIX which will roll out with the open banking model
- The new coin is expected to coexist with existing physical currency, according to the bank
Before launching its new central bank digital currency, the Banco Central de Brasil (BCB) wants at least a year more time (CBDC). The current BCB assessment is that the conditions for the adoption of a Brazilian CBDC will be met in two to three years, according to the bank.The timeline for the rollout, according to BCB, is dependent on the progress of the bank’s current projects. In contrast, the country’s chief central banker, Roberto Campos Neto, previously stated that his country could be ready for a digital currency by next year. Other new features of the bank include a new instant payment system called PIX, as well as the upcoming launch of its open banking model; the bank says it will wait for those to succeed before launching a CBDC.Despite this, the bank was optimistic about the benefits that a digital real could bring to the country.
According to the BCB, its new unit will be tasked with researching the digital currency issuance model in order to better understand the phenomenon and its potential consequences, particularly in terms of financial inclusion, economic growth, technological innovation, and financial transaction efficiency.The group will also look at risk mapping, which will include cybersecurity, data protection, and regulatory compliance issues, as well as an assessment of the CBDC’s impact on financial inclusion and stability, as well as monetary and economic policy conduct.
BCB is bullish on Digital Currency
The BCB remained upbeat about the prospects of a digital currency, claiming that it could provide new tools to foster innovation and competition in an increasingly digital economy, as well as reduce the use of cash and thus its maintenance costs, improve cross-border payment processes, curb illegal activities, and improve financial inclusion.The new coin is expected to coexist with existing physical currency, according to the bank.
In addition, the BCB has been participating in the global talks about standards for CBDCs. The next step, it said, is to look into the impact on the Brazilian economy. Following the establishment of general guidelines for desirable characteristics of a digital real, an open discussion with stakeholders will identify use cases and improve our understanding of the CBDC’s potentials in the context of the Brazilian economy.BCB planned to release a coin by 2022. That came at a time when central banks all over the world were racing to be the first to implement CBDCs. Those who did so first may end up inspiring and instructing others.
President’s view on CBDC on working together with BCB
The CBDC will collaborate with the BCB’s instant payment payment system, according to Roberto Campos Neto, president of Brazil’s central bank. He also mentioned that an instant payment system that is efficient and interoperable; an open system where you can create competition; and a currency that has credibility, is convertible, and international.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
