The president of Brazil’s Central Bank, Banco Central; has now said that Brazilians could expect to see a central bank digital currency (CBDC) before 2023. Based on a September 2 report from news outlet Correio Braziliense, the country might be ready for a CBDC in 2022.
President of Banco Central, Roberto Campos Neto; said that the bank had already started implementing measures aimed at modernizing the Brazilian financial system. These measures have made a CBDC the natural outcome making it inevitable. The president cited the country’s PIX instant payment system and open banking among these measures.
The central bank now plans to enable peer-to-peer and business-to-business transactions within 10 seconds or less using internet banking, mobile phone, or ATMs starting in November. Interestingly, an open banking system supports the exchange of user information between banks which enables customers to switch quite easily. Campos Neto stated:
“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.”
Banco Central has already begun laying the fundamental groundwork for a CBDC. Last month, the bank said that it had formed a dedicated team to assess how digital currency may fit with the national payments infrastructure. The team will also determine how digital currency may impact the general Brazilian economy.
Campus Neto expects that the dedicated team would be ready to present their findings on the matter within the next 6-12 months.