A new one will be added to the CBDCs by the Central Bank of Brazil! Countries around the world are working hard to figure out how blockchain technology can help their economies. The growing popularity of cryptocurrencies has led many central banks to look at the alternative fiat offered by crypto.
Brazil’s CBDC is expected to launch in 2024
Roberto Campos Neto, the president of the Banco Central do Brasil, recently announced that the central bank plans to introduce a digital currency of the central bank by 2024. Campos Neto’s statement came during a security and defense meeting recent data in the digital world.
According to President Neto, the first step includes a pilot program that will be carried out in conjunction with financial institutions. This will follow the intended use of the CBDC. “I think that this digitized, payment, integrated system, and participation, will help a lot in the development and participation of people in the financial world,” he added.
The head of the central bank of Brazil is convinced that the introduction of digital assets and CBDC will lead, among other things, to greater integration, lower costs and effective risk management.
CBDC development in Brazil
Earlier this year in March, the South American country took a big step to start the development of its CBDC. According to a report from the Brazilian media Poder360, the Central Bank of Brazil has selected nine partners to create a Brazilian CBDC called “Digital Real”.
These include the largest crypto exchange in Latin America, Mercado Bitcoin, the popular DeFi protocol Aave, and Banco Santander Brasil. These selections were made from the 47 plans received by the central bank of Brazil for the development of Digital Real.
On November 30, the Brazilian National Congress passed a law that will legalize the use of cryptocurrencies as a means of payment in the country. The move brought clear regulatory requirements to Brazilian companies operating in the crypto space.