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The President of the Central Bank of Brazil, Roberto Campos Neto, has clarified the status of the development of the Brazilian Central Bank’s digital currency (CBDC), the digital real. Campos Neto stated that the pilot test will start now and that the banks will have to digitize more of their balances in the future.
Brazil is making progress in the development of its central bank digital currency (CBDC), and the design of its architecture. Roberto Campos Neto, President of the Central Bank of Brazil, recently described the progress that the institution has made to build the foundation for the operation of the proposed digital real currency.
At a conference hosted by Brazilian bank BTG Pactual, Campos Neto stated that pilot tests for the digital reality would start “now” and that the project received significant assistance from private banks. Campos Neto estimates that the entire development route for the project should be ready by December 2023, when his mandate as president of the bank ends.
Campos Neto also commented that the implementation of the currency will cause banks to keep more digitized assets as part of their balances. The Brazilian CBDC model implies that each bank will be able to issue this currency backed by regulated deposits.
Campos Neto also elaborated on the vision he has for the complete digital economy system that he envisions for Brazil in the coming years. For Neto, the digital reality is just one more piece of Brazil’s structure, which will also include the current fiat payment initiative PIX, and the Open Finance projects, which aim to allow seamless interconnection of banks.
Neto believes that this platform can change the way personal finance is run in Brazil today. He stated:
I think these three things can change the history of financial intermediation in Brazil, transform our system into something efficient, and today in the world there is no one so advanced.
On February 6, Fabio Araujo, coordinator of the project at the Central Bank of Brazil, explained how these first tests would be carried out. The pilot tests will focus on assessing the degree of security that the currency can provide users, and whether the level of privacy is in accordance with current regulatory standards.
What do you think of the upcoming Brazilian digital pilot tests? Tell us in the comments section below.
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