The Central Bank of Brazil plans to introduce its digital currency by 2024, President of the bank Roberto Campos Neto said at a conference.
Additionally, he thought that by doing this, the financial industry would be more inclusive of a diverse spectrum of individuals.
“I think that this digitized, paid-in, integrated system, with inclusion, will help a lot in the development and inclusion of people in the financial world.”
He continued by saying that more inclusivity, reduced costs, intermediation, competition with fewer entry barriers, efficiency in risk management, monetization of data, and full tokenization of capital assets and contracts characterize the Brazilian digital economy.
Many inside the Brazilian government worry that the tokenized system will damage the central bank’s balance sheet. Still, the president reassured them that it wouldn’t affect the system’s monetary policies because it inherits all present deposit-related legislation.
Furthermore, Campos Neto claims that IMF officials have written to the central bank and left comments stating that this approach seems to be the easiest to implement and that other central banks should investigate it further.
Prior to this, the Brazilian Congress passed a measure on November 30, 2022, regulating the use of cryptocurrencies as a means of payment in Brazil. This might assist in advancing the use of digital assets in the South American nation.
The law would legalize cryptocurrency payments for goods and services but not give them the status of legal cash (it still requires the president’s approval).
This suggests that financial institutions may soon begin offering cryptocurrency payment services, therefore facilitating the purchase and sale of ordinary goods using cryptocurrencies in a way similar to how people already use credit cards or other services of a similar nature.