Is CBDC happening anytime soon in Brazil?
This was the news that broke out recently as the Central bank of Brazil — or Banco Central do Brazil is reported to start the ball rolling to create the country’s Central Bank Digital Currency (CBDC).
According to the central bank’s official statement, a separate committee has been formed, so there is one focused and moving team to study this.
The team comprises 12 members in an intergovernmental group that will evaluate how the CBDC could aid with the national payments ecosystem and its effect on the economy and the society.
As well, this new group will examine how much money will be saved by issuing CBDCs and if it will be beneficial overall for the national economy.
Rafael Sarres de Almeida, an executive from the Information Technology Department of the Brazilian central bank, revealed how the agency has been planning to create this for the longest time.
“The subject of digital currencies addressed by central banks has been on many central banks’ research agenda for some time. However, this year, there was a greater focus on a more practical approach,” he said in an interview.
Previously, Brazil devotes around 90 billion reals ($16 billion) annually to guarantee an available supply of paper money in circulation, instead of between 1% and 2% of its GDP.
As well, China had already commenced the final testing phase of its digital currency, and many other monetary authorities had announced new projects.
In May, Ripple XRP had a serious meeting with Brazil’s central bank to align on the “institutional matters.”
The bank confirmed that its president Roberto Campos Neto had a video conference with Ripple CEO Brad Garlinghouse and three other crypto firm representatives. Still, as to the details fo the topic, it remained just topline information.
Back in 2018, there have been studies as to the factors that would be considered in creating the central bank for Brazil.
JP Koning released a report titled Approaches to a Central Bank Digital Currency in Brazil in R3 enumerating the possible scenarios if the country invests in the central digital blank. The paper also outlined some factors such as 1) the electronic version of the banknote; 2) an AI-based CBDC that pays interest, and; 3); and interest-paying cash that can be shielded and unprotected to provide for anonymity.
Is it happening anytime soon in Brazil?
This was the news that broke out recently as the Central bank of Brazil — or Banco Central do Brazil is reported to start the ball rolling for the creation of the country’s Central Bank Digital Currency (CBDC).
According to the official statement from the central bank, a separate committee has been formed, so there is one focused and moving team to study this.
The team is composed of 12 members in an intergovernmental group that will evaluate how the CBDC could aid with the national payments ecosystem and its effect on the economy and the society.
As well, this new group will examine how much money will be saved by issuing CBDCs and if it will be beneficial overall for the national economy.
Rafael Sarres de Almeida, an executive from the Information Technology Department of the Brazilian central bank, revealed how the agency has been planning to create this for the longest time.
“The subject of digital currencies addressed by central banks has been on the research agenda of many central banks for some time. However, this year, there was a greater focus on a more practical approach,” he said in an interview.
Previously, Brazil devotes around 90 billion reals ($16 billion) annually to guarantee an available supply of paper money in circulation, instead of between 1% and 2% of its GDP.
China, as well, had already commenced the final testing phase of its digital currency, and many other monetary authorities had announced new projects.
In May, Ripple XRP had a serious meeting with the central bank of Brazil to align on the “institutional matters.”
The bank confirmed that its president Roberto Campos Neto had a video conference with Ripple CEO Brad Garlinghouse and three other representatives of the crypto firm. Still, as to the details fo the topic, it remained just topline information.
Back in 2018, there have been studies as to the factors that would be considered in creating the central bank for Brazil.
JP Koning released a report titled Approaches to a Central Bank Digital Currency in Brazil in R3 enumerating the possible scenarios if the country invests in the central digital blank. The paper also outlined some factors such as 1) a simple electronic version of the banknote; 2) an account-based CBDC that pays interest, and; 3) digital interest-paying cash that can be shielded and unshielded to provide for anonymity.
No Comment