Fabio Araujo (Director of the Central Bank of Brazil) has spoken highly of Bitcoin’s properties, claiming that it represents a new type of financial innovation. Araujo said that Bitcoin was the driving force behind what today is known as Web3. Araujo, at an event, also spoke out about the current state of digital real development, and said that his organisation hopes to provide smart functions for the currency.
Central Bank of Brazil lauds Bitcoin as a Pioneer in Web3 Technology
The issue of cryptocurrency is being addressed by more and more central bank around the globe. They are also trying to figure out how to invent to stay ahead with this technology. Fabio Araujo (director of the Central Bank of Brazil) praised Bitcoin for its financial innovation and discussed how the digital real (central bank digital currency, CBDC), which is still in research might have programming capabilities.
This was made possible by the 2009 launch of Bitcoin. It is a distributed database technology which facilitates web3 creation. Bitcoin’s application provides the Proof of Work solution. It is essential for Web3 to provide the basic services it offers.
Araujo also noted that the tech was before Ethereum which has smart contracts, adding more options to the financial system.
A Programmable Digital Real
Araujo spoke also about the topic of digital reals, suggesting that they might be capable of having intelligent capabilities. The central bank’s digital money is linked to Web3 elements. These include tokens and digital assets. IoT protocols are also shown.
Araujo, the head of the central bank made it clear that there was a distinction between crypto assets and digital real. Araujo stated:
CBDC supports cryptography, but it isn’t a crypto asset. In the same manner that listed assets are not competitive with the Real, the CBDC represents the Real in the context in which cryptocurrency operate.
Araujo stated that the digital real offered smart functions for bridges between Web3 protocol and traditional finance. The bank is currently conducting experiments with digital real concepts, but the final decision on whether or not to launch the project will come in 2024.
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