Different countries across the world are showing great interest in launching their central bank digital currency (CBDC). Recently, the President of Brazil Central Bank has announced that they might launch Brazil’s CBDC before 2023.
A report was published by Correio Braziliense on September 02 which indicated that Brazil might see its CBDC in 2022. Roberto Campos Neto, the president of Banco Central has stated that the central bank is trying out different measures to modernize the financial system of the country. Owing to this modernization, the Brazil central bank has stated planning to work on their CBDC.
According to the President of Brazil Central Bank, open banking and instant payment systems are among the measures that the bank has been trying out. The bank is aiming to enable both peer-to-peer and business-to-business transactions within 10 seconds. This will be done using the mobile/internet banking or the beginning of ATMs in November.
Open banking system is meant to facilitate the exchange of users' information between banks. This helps the customers switch easily without any complications. The president has said, “A CBDC distinguishes itself from cryptocurrencies without national trust, like Bitcoin, because it is just a new form of representation of the currency already issued by the national monetary authority.”
It is revealed that the groundwork of CBDC had already been started by the Brazil Central Bank. Last month, the bank had stated that it has formed a group that will work towards the research of digital currency. The group was entrusted with seeing the use cases of digital currency within the national payments ecosystem and how it is going to affect the economy of the country. The group is expected to reveal their findings in the next 6-12 months.