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Economy minister confirms that Brazil will have its own CBDC

November 5, 2020

The Brazilian Minister of Economic Affairs, Paulo suspectssaid Brazil will issue its own central bank digital currency (CBDC).

Guedes made the statement on Thursday during a ceremony to celebrate the Opening of the Caixa Econômica Federal digital savings account No. 100 million::

“Now that the central bank is autonomous again, it is also surprising in the digital dimension: Pix, OpenBank, fintechs and digital currency. Brazil will have its own digital currency. Brazil is ahead of many countries.”

This is the first time that the Minister has spoken directly on the subjectalthough it did not provide any further details on the central bank’s CBDC project.

Really digital

Economy minister confirms that Brazil will have its own CBDC
Economy minister confirms that Brazil will have its own CBDC

The Brazilian central bank announced in early August that it had set up a study group on the possible issue of a digital real.

Consequently, the President of the Central Bank, Roberto Campos Netosaid that Brazil needs an “upgrade” of its currency and that it will be done within the framework of Pix, a new federal digital payment system::

“In our case, Pix is ​​very important because from now on we see the unification of an instant, open and interoperable payment method with an open data system. You will find yourself somewhere in the future with a coin that has not yet been perfected. “

Even if the central bank has not yet announced how the digital version of the real will actually work, Campos Neto has already announced that it will start circulating in 2022.

This is the first time the minister has spoken on the matter but has not given any further details on the CBDC project the BC is running. Yet, The minister has announced several new functions aimed at digitizing and modernizing the Brazilian economy.

Guedes has already said that he is planning one Caixa Econômica Federal’s newly created digital bank goes public and that Brazil is about to join the Organization for Economic Co-operation and Development (OECD).

The discussion about a CBDC takes place at a special time for the digitization of the Brazilian economy. Monday, Central bank Pix’s instant digital payment system has registered its first transactions. The official launch is scheduled for November 15th.

CBDC

According to the central bank The digital real would mainly be used for stock market transactionsNational and international.

The Organizational Director of the Central Bank’s Financial System, João Manoel de Mellosaid:

“The option of making a Pix from abroad is on Pix’s evolution agenda, but not for next year.”

On this subject, the Deputy Director of Computer Science at the BC, Arístides Andrade Cavalcante Netoalso pointed out that the CBDC of Brazil must be linked to the exchange processes.