Fabio Araujo, representative of the Central Bank of Brazil, spoke about the possible development of digital reality at a public hearing held by the Committee on Science, Technology, Innovation, Communications and Information Technology of the Brazilian Senate. Araujo clarified that Digital Real is still in the debate stage and they are determining the need for this instrument.
The Central Bank of Brazil is still discussing digital truth
Brazil’s central bank still Learn Create a digital reality based on the statement made by the agency’s representative Fabio Araujo. In a recent public hearing with the Senate Committee on Science, Technology, Innovation, Communications and Information Technology, Araujo stated that the bank is still discussing the social needs of the central bank’s digital currency (Central Business District). Araujo announced:
Our goal is to clarify what society demands of Real Digital. After that, we will soon enter the testing phase with a proof-of-concept and innovation laboratory, which should take place throughout 2022.
Araujo also revealed that the Central Bank of Brazil is still holding meetings with different parties to help design the Digital Real project.Senator Cunha, who proposed the meeting, said that using Digital currency Due to lack of information on the subject, necessary discussions were held. He emphasized:
We need to debate this topic. Digitization is a reality in all areas of people’s lives, but there is still no clearer information about how the currency in Brazil will happen.
Central bank digital currency and cryptocurrency
However, this opening to the central bank’s digital currency Digital Real did not translate into de facto approval for cryptocurrencies such as Bitcoin and Ethereum. In fact, the position taken by the Brazilian Central Bank is negative. Araujo clarified:
Don’t confuse CBDC with cryptocurrency. The Central Bank of Brazil insists that cryptocurrencies are speculative assets that will bring high risks to individual investment portfolios.
Although the Central Bank of Brazil is still in the research phase of the hypothetical Digital Real, it release The general guidelines that this currency must follow in May indicate a genuine interest in the subject. This makes Brazil a pioneer in the digital currency survey of Latin American central banks, and the central banks in the region seem to be less interested in this issue.
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