The Brazilian Central Bank Is Also Now Looking Warmly at CBDC
The Brazilian Central Bank Is Also Now Looking Warmly at CBDC. The central bank sees digital currency as a way to increase participation in the financial system. The Central Bank of Brazil plans to introduce a central bank digital currency (CBDC) by 2024, bank chief Roberto Campos Neto said Tuesday during a conference organized by Brazilian news site Poder360.
The bank will conduct a pilot program in collaboration with some financial institutions before starting to use CBDC, a digital currency issued by the central bank, in several places, Campos Neto said.
“I think that this digitized system, payment and participation, and participation, will help a lot in the development and integration of people in the financial world,” said Campos Neto. In March, the country selected nine partners to help it create a digital currency. When the CBDC is introduced, Brazil will join the Bahamas, Nigeria, the Eastern Caribbean and Jamaica as countries that have already issued their own CBDC.
Many countries are investigating the technology, and some have decided to start using one as a risk-free alternative to crypto after the failure of the crypto exchange FTX shocked the industry. “Greater participation, lower costs, integration, competition and lower barriers to entry, efficiency and risk management, data investment, investment and comprehensive contracts,” said Campos Neto. “That’s what we’re seeing in this digital economy in Brazil.”