The Brazilian Central Bank has announced that its digital currency, which is being referred to as the “digital real,” is currently being developed with the objective of assisting existing Brazilian businesses in the process of expanding. In addition to this, the bank is working to strengthen the regulations that encompass cryptocurrencies and the assets associated with them.
The governor of the central bank, Roberto Campos Neto, has been quoted as saying that the first stage of the trial program for the digital real will get underway in the month of March in an article that was published in O Globo.
In addition to this, Campos Neto maintained that the paradigm for the Brazilian digital currency was being developed with the intention of “fostering new business” within the sector of the financial services industry in which it operates. He asserted that this strategy was “absolutely different” from those that were being utilized in “other countries,” which he referred to as “other countries.”
It was reported that Campos Neto made the following statement, which was attributed to him:
“Our objective is to have something up and to run as quickly as humanly possible, and at the very latest by the year 2024,”
Brazilian Central Bank’s CBDC and Crypto Regulation Plans
Concerning cryptocurrencies, the governor made the statement that the Central Bank was “working assiduously” with the regulator Securities and Exchange Commission (CVM) on the policing of crypto assets. This statement was made in reference to the policing of crypto assets. This was said in reference to the participation of the Central Bank in the monitoring of cryptocurrencies like bitcoin and Ethereum.
“It is absolutely necessary for us to be totally on the same page as the CVM [with respect to the topic of crypto regulation].”
Campos Neto further asserted that he participated in a conference regarding crypto assets “approximately a year ago” alongside the Secretary of the Treasury for the United States of America, Janet Yellen. Campos Neto’s comments were made in response to a question about whether or not he had met Yellen.
The governor stated that he had informed Yellen of his observation that the cryptocurrency business was plagued with “problems,” and he claimed that he had done so.
One of these pertains to the person’s imprisonment, which the individual has described as being “overly concentrated.”
Campos Netto maintained that members of the security forces should not be placed in precarious circumstances. In addition to this, he maintained that the “problem” with FTX could have been avoided if banks were allowed to “become administrators of crypto assets.” This was his justification for why the so-called “problem” should not have occurred in the first place.
The governor also mentioned that the Central Bank was currently working with partners from Colombia, Uruguay, Chile, and Ecuador on a strategy for “instant payment.” This point was made in the statement before this one.
In order to make it feasible for their trading partners in the LATAM region to process “recurring payments,” the nations of the region want to find methods that are more effective than those currently available.
The governments of Brazil and Argentina have discussed the possibility of establishing a shared currency; however, supporters of cryptocurrencies have proposed that Brazil and Argentina adopt bitcoin instead (BTC).
08 Mar 2023
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