Central Bank of Brazil Confirms Plans to Test Its CBDC This Year
The Brazilian Central Bank has confirmed that it will conduct a pilot test of the digital real, its proposed central bank digital currency (CBDC). According to Roberto Campos Neto, president of the bank, the pilot will take place in the last six months of this year and include a fixed supply of the token.?
During an event, he explained that this is a method to achieve currency digitalization without disrupting the balance sheet of banks. The CBDC program could become a reality for Brazil as a result of this pilot program, as it will be tied to the reserve transference system, a fiat-based payment system.?
Campos Neto explained that bitcoin is considered more an investment asset than a payment method in the Brazilian market, but this may change as more people use the cryptocurrency for payment purposes.
Brazilian legislators have also taken steps to establish a uniform legal environment for digital currencies. The Brazilian Congress will be presented with a single proposal incorporating various suggestions. These new hybrid ideas are expected to be accepted by the end of the year.
Several countries have announced their plans to launch CBDCs, including Brazil and India. China and The Bahamas have already launched CBDCs, and others countries are pursuing similar plans.
As part of their effort to strengthen their economies, improve efficiency, and lower the costs associated with the country's currency management system, India and Brazil, as well as other countries, are establishing CBDCs. Additionally, CBDCs are being developed to reduce the need for cryptocurrencies.?
CBW - External Analyst