According to a news item on September 2 from the Correio Braziliense media outlet. Specifically, Roberto Campos Neto, president of the central bank of the nation, indicated: “Brazil’s CBDC will be ready by 2022, as it has the necessary conditions”.
In addition, he added:
“Definitely, the institution has been taking measures to modernize the Brazilian financial system for some time. So the launch of a CBDC is the next step for evolution ”.
The CBDC of Brazil
In particular, among the measures adopted for the launch, is the PIX. Currently, it is the instant payment system in Brazil.
It is true that it allows users to carry out transactions between them and between companies. Indeed, in approximately 10 seconds, through a Smartphone, Internet banking or ATMs.
In this regard, Roberto Campos Neto clarified: “The launch of a CBDC is not a surprise. As is known, in August it was reported that a group had been created dedicated to the evaluation of digital currency”.
The study group
Definitely, in order to foresee the future of financial relations, the Central Bank formed a working group. Obviously, to discuss the impacts of an eventual CBDC problem in Brazil.
Similarly, the 12-member team is tasked with issuing a proposal for a digital currency issuance model, which includes:
- Risk identification.
- Cyber security
- Data Protection.
- Normative and regulatory compliance.
- Analysis of the impacts of the CBDC on inclusion and financial stability.
- Conduct of monetary and economic policies.
For this purpose, the group is expected to present its conclusions within a period of six months to one year.
Opinions of the study group
Naturally, the coordinator of the study group, Aristides Andrade Cavalcante Neto, indicated:
“A CBDC would allow Brazilians to interact with their money, in a completely electronic way.”
Meanwhile, Rafael Sarres de Almeida, alternate coordinator of the study group, pointed out that: “The CBDC issue has been on the research agenda of many central banks for some time. However, eThis year, there was a greater practical focus”.
On the other hand, Bruno Batavia, also in the study group team, said that: “Among the benefits of a CBDC, andn first place, andIt would reduce the cost of issuing and maintaining cash, notes and coins that circulate in the economy”.
But even so, Arístides Neto added: “In addition to reducing costs. A digital currency can boost financial citizenship. Since it would facilitate the use of money safer than at present”.
Because of all this, Roberto Campos Neto said: “To have a digital currency, you need an instant payment system that is efficient. TOitself, orA currency that has credibility, is convertible and international«.
To close he indicated:
“After that, I think you have all the ingredients for a CBDC. In short, we believe we will have it by 2022 ”.
Do you think Brazil is ready for its CBDC? Leave us your opinion in the comment box.
To finish, I leave you this phrase from Alex Preston: “It is important to make mistakes. It is part of the process to find out what works and what does not work”.