According to Brazilian Central Bank President Roberto Campos Neto, the Brazilian Central Bank’s (CBDC) digital currency, the digital real, will be more of a wholesale asset than a retail-oriented public token. Campos Neto indicated that private banks in the country will be able to issue their own stablecoins, which will be backed by digital real-world deposits.
Digital Real will not be focused on retail
Brazil is planning to launch a CBDC with a design that is very different from other CBDCs such as the digital yuan, also known as digital currency electronic payment. The digital real, the Brazilian CBDC, will be used for wholesale and will not be used for retail purposes. This information was disclosed Roberto Campos Neto, President of the Central Bank of Brazil, at the Crypto Summit in Rio.
Campos Neto stated about the intended use of digital realism:
Banks will be able to issue stablecoins to their deposits and develop the technology for this, they will have to invest because they can make a profit. And once they figure that out, the protocols for issuing stablecoins for deposits will be basically the same as for monetizing various other digital assets.
In addition, Campos Neto explained that the digital real will have a very unique focus with the goal of monetizing assets without compromising the lending functions of private banks, using them as collateral.
Tokenization and CBDC clutter
Campos Neto also included tokenization among the possible processes by which CBDC can improve things. Campos Neto referred to mortgages and said that the introduction of a tokenization model could make it easier to pay or get a reverse mortgage by reducing fees and waiting times, as well as simplifying the paperwork associated with this task.
In this sense, Brazil recently launched the Brazilian Blockchain Network, a project that aims to create a common base for other institutions in the country to build their projects on top of it. This project may also use tokenized assets and digital reality in the future to achieve the aforementioned goals.
In conclusion, Campos Neto criticized the confusion and lack of coordination faced by central banks in the process of developing their respective CBDCs. He explained:
When I meet with other central banks, I see that one is trying to develop a decentralized system, and the other is talking about automating a multi-level payment system… If you have such a disparate development, it will never be better than a crypto platform. which is centralized.
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