The Central Bank of Brazil has confirmed that the institution will carry out a pilot test regarding the implementation of its central bank digital currency (CBDC) proposal, the digital real. Roberto Campos Neto, president of the bank, also said that this new test will include a fixed supply of the mentioned token, and detailed that pilot will be run during the last six months of this year.
The Central Bank of Brazil advances the CBDC project
The Central Bank of Brazil provided details on the progress it has made regarding its CBDC project, the digital real. Its president, Roberto Campos Neto, hinted at an unspecified test involving the use of the currency in the last six months of this year. At one event, he said:
It is a way to create digitization of currencies without creating a break in bank balance sheets. This project should have some kind of pilot in the second half of the year.
Campos Neto also gave hints on how this currency will be used, saying it will be linked to the Reserve Transfer System, a kind of fiat-based payment system. With this pilot program, Brazil could rise to the forefront of countries that have CBDC programs in South America.
Campos Neto also offered his perspective on the state of the cryptocurrency market in Brazil. He explained that cryptocurrencies are seen more as investment assets than a means of payment. However, this could change as adoption takes place globally and locally.
Path to a CBDC and a regulatory panorama
The Central Bank of Brazil has been making progress in its digital real project since last year when it drafted the guidelines that a Brazilian CBDC should follow and announced that it was still studying and debating the possibility of issuing such a currency.
However, in March, the institution selected nine institutions out of 47 proposals that will be able to produce projects intended to present the opportunities that a hypothetical digital real could offer in different sectors.
Brazil has also made progress on legislation to approve a unified cryptocurrency legal framework. In this sense, the deputies and senators have declared that they will combine several proposals into one that will be presented to the Brazilian Congress. The rapporteurs of these initiatives expect this new hybrid proposal to be approved in the coming months.
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