Central Bank of Brazil studies CBDCs

In the foreground, as interest in central bank digital currencies (CBDC) grows, Brazil does not want to be left behind. Therefore, the Central Bank of Brazil (BCB), has formed a team dedicated to studying the crypto-currency industry.

It is important to emphasize that, the approval of the Bitcoin Trader team does not mean that the Central Bank of Brazil will issue a digital currency. Rather, that the monetary authority will study the issue and give society an answer on the subject.

Because of this, in a statement on August 21, the Central Bank of Brazil announced that the objective is to study the digital currencies issued by the central banks, the CBDCs. In addition, to evaluate the benefits and impacts of the eventual issuance of the Real (national currency), in digital format.

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Creation of the team to study the CBDC
In this regard, the decision of the Brazilian central entity to create a work team comes in the wake of recent growth in the digital payments sector.

In this regard, Aristides Andrade Cavalcante Neto, from the Central Bank’s Information Technology Department and coordinator of the group, explained:

“The amount of electronic payments has been growing in the last few years. Thanks in particular to the evolution of mobile devices and communication technology”.

Similarly, the Central Bank of Brazil, indicates that the new group will examine how much money could be saved by issuing the CBDC. It should be noted that, the team consists of 12 members of an intergovernmental group.

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Objectives of the Central Bank of Brazil Group

Additionally, according to the statement: “Among the objectives of the group, is the proposal of a model for the eventual issuance of the CBDC. Also, with the identification of risks and the analysis of the impacts of the CBDC in the inclusion and the financial stability. Also, the conduct of monetary and economic policies”.

In the same sense, in the opinion of Arnaldo Francisco Vitaliano, of the Department of Promotion of the Financial Citizenship of the bank: “To study the model of emission of digital currency, is fundamental to understand the phenomenon and its possible impacts”.

Similarly, Rafael Sarres de Almeida, an official from the Information Technology Department of the Central Bank of Brazil, said:

“The issue of digital currencies addressed by central banks has been on the research agenda of many central banks for some time”.

He added: “However, this year there was a greater focus on a more practical perception.

Likewise, among the analyses addressed in the study model, there will be an evaluation of the complementary benefits that an electronic currency can bring to the instantaneous payment system “Pix”, which will start operating in November.