Central Bank of Brazil President States Digital Real Pilot Is Imminent
Brazilian Central Bank President Roberto Campos Neto has clarified the status of the development of Brazil’s central bank digital currency (CBDC), a digital real. Campos Neto said the pilot test will start now and that banks will have to digitize more of their balance sheets in the future.
Pilot tests of digital reality are just around the corner
Brazil is making progress in developing its central bank digital currency (CBDC) and designing its architecture. Roberto Campos Neto, President of the Central Bank of Brazil, recently detailed the institution’s progress in laying the foundation for the operation of the proposed digital real currency.
At a conference organized by the Brazilian bank BTG Pactual, Campos Neto declared that pilot testing of digital realism will begin “now” and that the project is receiving significant support from private banks. Campos Neto believes that the full development route of the project should be ready by December 2023, when his term as president of the bank expires.
Campos Neto also noted that the introduction of the currency will force banks to keep more digital assets on their balance sheets. The Brazilian CBDC model implies that every bank will be able to issue this currency backed by regulated deposits.
New vision of finance
Campos Neto also detailed his vision for the complete digital financial system he envisions for Brazil in the coming years. For Neto, digital real is another part of the Brazilian framework that will also include the ongoing PIX fiat payments initiative and Open Finance projects that aim to ensure banks are seamlessly interconnected.
Neto believes that this platform can change the way personal finance is managed in Brazil today. He declared:
I think these three things can change the history of financial intermediation in Brazil, turning our system into something effective, and there is no such advanced system in the world today.
On February 6, Fabio Araujo, project coordinator at Brazil’s Central Bank, explained how these first trials would be carried out. Pilot tests should focus on evaluating the degree of security the currency can provide to users and whether the level of privacy meets current regulatory standards.
What do you think about the upcoming Brazilian Digital Real Pilot Tests? Tell us in the comments section below.
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