The president of the Central Bank of Brazil, Roberto Campos Neto, has clarified the status of the development of the Brazilian central bank’s digital currency (CBDC), the digital real. Campos Neto said that the pilot test will start now and that banks will have to digitize their balances more in the future.
Pilot Testing of Imminent Digital Reals
Brazil is advancing the development of its central bank digital currency (CBDC) and the design of its architecture. Roberto Campos Neto, president of the Central Bank of Brazil, recently detailed the progress that the institution has made in building the bases for the operation of the proposed real digital currency.
At a conference organized by the Brazilian bank BTG Pactual, Campos Neto fixed that the pilot tests of the digital real would be starting “now”, and that the project was receiving significant help from private banks. Campos Neto estimates that the complete development path of the project should be ready by December 2023, when he ends his term as president of the bank.
Campos Neto also commented that the implementation of the currency will make banks keep more digitized assets as part of their balance sheets. The Brazilian CBDC model implies that each bank will be able to issue this currency backed by regulated deposits.
A new vision for finance
Campos Neto also referred to the vision he has of the complete digital financial system that he envisions for Brazil in the coming years. For Neto, the digital real is just one more part of Brazil’s fabric, which will also include the current PIX fiat payments initiative and Open Finance projects, which aim to enable transparent interconnection of banks.
Neto believes that this platform could change the way personal finance is carried out in Brazil today. He fixed:
I believe that these three things can change the history of financial intermediation in Brazil, transforming our system into something efficient, and today in the world there is no one so advanced.
On February 6, Fabio Araujo, coordinator of the project at the Central Bank of Brazil, explained how these first tests would be carried out. The pilot tests will focus on evaluating the degree of security that the coin can provide to users and whether the level of privacy meets current regulatory standards.
What do you think of the upcoming Brazilian digital real pilot tests? Tell us in the comment section below.
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