The Central Bank of Brazil (BCB) has said that the central bank digital currency (CBDC), known as the digital real, is being developed with the intention of assisting existing Brazilian firms in expanding. In addition to this, the bank is working to strengthen the restrictions that govern cryptocurrency assets.
According to an article published in O Globo, the governor of the central bank, Roberto Campos Neto, has announced that the first stage of the pilot program for the digital real will commence in the month of March.
In addition, Campos Neto said that the paradigm for the Brazilian digital currency was being developed with the intention of “fostering new companies” inside the financial services industry. He said that this approach was “very different” from those that were being employed in “other nations.”
According to what was attributed to Campos Neto, he said:
“Our goal is to have something up and operating as soon as possible, and at the very latest by the year 2024,”
Proposals for the Brazilian Central Bank to Regulate CBDC and Cryptocurrencies
On the topic of cryptocurrencies, the governor noted that the Central Bank was “working hard” with the regulatory Securities and Exchange Commission (CVM) on the policing of cryptoassets. This was expressed in reference to the Central Bank’s involvement in the policing of cryptocurrencies.
“It is essential for us to be completely in agreement with the CVM [with regard to the topic of crypto regulation].”
Campos Neto also said that he participated in a discussion about cryptoassets “roughly a year ago,” alongside the Secretary of the Treasury for the United States of America, Janet Yellen.
The governor said that he had conveyed to Yellen his observation that there were “issues” with the cryptocurrency industry.
One of them concerns the individual’s time spent in detention, which he described as being “overly focused.”
Campos Netto said that security personnel should not be put in dangerous situations. And he said that the FTX “issue” may have been avoided if banks were permitted to “become cryptoassets custodians.” This was his explanation for how the “problem” might have been avoided.
The governor also said that the Central Bank was now working on a solution for “immediate payment” with partners from Colombia, Uruguay, Chile, and Ecuador. This was stated in the previous sentence.
The countries in the area aim to discover more efficient methods to make it possible for their trade partners in the LATAM region to execute “recurring payments.”
The governments of Brazil and Argentina have mulled over the possibility of establishing a common currency, but proponents of cryptocurrencies have suggested that the two countries instead embrace bitcoin (BTC).
Compiled by Coinbold