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- The Central Bank of Brazil has disclosed details in context to the advancements regarding its CBDC project, the digital real.
- The bank president, Roberto Campos Neto, announced that an unspecified test of usage of the currency can take place in the past six months of the current year.
- Campos Neto also shared about the usage of currency, saying it will be linked to the reserve transference system, just like a fiat-based payments system.
The Central Bank of Brazil has revealed details regarding the development of its CBDC project, the digital real. Roberto Campos Neto, president of the bank, shared about an unspecified test regarding currency usage in the last six months of the ongoing year.
Campos Neto during an event explained that this is a method of developing currency digitization “without creating a break in bank balance sheets.” Concluded by saying that the project needs to have “some kind of pilot in the second half of the year.”
The bank president also hinted at the way currency is going to be utilized, disclosing that it will be connected to the reserve transference system, like a fiat-based payments system. Brazil can reach the vanguard of countries with CBDC programs in South America, through this pilot program.
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Campos Neto also shared his stance on the state of Brazil’s cryptocurrency market. The president explained that cryptocurrencies are considered an investment asset rather than a payment method. But, this perception can change with more adoption at both local and global levels.
The Central Bank of Brazil seems to be working on its CBDC project since last year when it issued guidelines on a Brazilian CBDC and declared that it is still in discussion regarding the issue of a CBDC.
But, in March, the bank made the selection of nine institutions out of 47 proposals that can build projects designed to offer opportunities that a hypothetical digital real could offer in various sectors.
Some developments in approving a unified cryptocurrency legal framework by Brazil, are also seen. Senators and deputies have announced that they will make one project by combining several projects, which will then be presented to the Brazilian Congress. The latest hybrid proposal is expected to get approved in the coming months.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
