Brazil’s Central Bank has announced that it will conduct a pilot study regarding its central bank digital currency, the CBDC. Roberto Campos Neto the president of the bank stated that this test would include a fixed supply token. This pilot will also be conducted in the last six months.
Central Bank of Brazil Funds CBDC Project
Brazil’s Central Bank has provided details on the progress it made in its CBDC project. Roberto Campos Neto the president suggested that there would be an unknown test regarding the use of the currency in the final six months. He made the following declaration at an event
It is an easy way to digitize currency without causing a disruption in bank balances. The second half of this year should see some pilots.
Campos Neto gave some hints as to how this currency would be used. He said that it would be tied to the reserve transference, which is a type of fiat-based payment system. Brazil may be able to move up the list of South American countries with CBDC programs through this pilot program.
Campos Neto shared his thoughts on the current state of Brazil’s cryptocurrency market. He said that cryptocurrency is more commonly used as an investment tool than as a means of payment. This could be changing as more people adopt cryptocurrencies locally and globally.
A pathway to a CBDC or Regulatory Panorama
Since last year, the Central Bank of Brazil is moving forward with the digital real project. It has redacted guidelines for a Brazilian CBDC and stated that it was still studying the possibility of issuing such currency.
In March however, nine institutions were selected by the institution from 47 submissions that could produce projects that would present opportunities for a digital real in various sectors.
Brazil also has made progresses in legislating to approve the unified cryptocurrency legal structure. Senators and deputies have announced they will merge several proposals in one to be presented before the Brazilian Congress. These initiatives’ rapporteurs expect that the new hybrid proposal will be adopted in the coming months.
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