According to Roberto Campos Neto, the President of the Central Bank of Brazil (CBDC), Brazil’s digital real will become a more wholesale-oriented asset than a token that is primarily aimed at retail customers. Campos Neto stated that the nation’s private banks will soon be able issue stablecoins, which will be secured with digital real deposits.
Digital Real is not Retail-Oriented
Brazil plans to issue a CBDC with a different design than other CBDCs, such as the digital renminbi. Also known as Digital Currency Electronic payment. The Brazilian CBDC’s digital real (or digital real) will serve a wholesale function and not for retail. Roberto Campos Neto (president of the Central Bank of Brazil), revealed this information at a Rio crypto summit.
Campos Neto provided information about the expected uses for the digital real.
Stablecoins can be issued by banks on deposits. Banks must invest to make gains. Once they’ve got that technology, their protocols for issuing deposits stablecoins will be similar to those for monetizing other digital assets.
Campos Neto also explained that digital reals will be a unique platform with a singular focus on monetizing assets and not affecting the credit function of private banks. It can even be used as collateral.
CBDC Disarray and tokenization
Campos Neto also mentioned tokenization, which is one way a CBDC might improve the current state of affairs. Campos neto also mentioned mortgages. He stated that tokenization could simplify reverse mortgage payments and reduce fees.
Brazil launched the Brazilian Blockchain Network recently. This project aims at creating a shared platform that allows other institutions within the country to run their projects. To achieve these goals, the project could also make use of tokenized assets or the digital real.
Campos Neto concluded by critiquing the chaos and lack of coordination central banks experienced when designing their CBDCs. He explained:
When I meet with other central banks, I see that one is trying to develop a decentralized system, and another talks about automating a multi-tiered payment system… If you have development in this uncoordinated way, it will never be better than a crypto platform that is centralized.
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