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The central bank president says Brazil could have a CBDC in two years

September 4, 2020

The president of the Brazilian central bank announced that Brazilians could have a digital currency before 2023.

According to a report by the news agency dated September 2 Correio Braziliense, Brazil could be ready for a central bank-issued digital currency (CBDC) as early as 2022. Roberto Campos Neto, The central bank president said the bank had already taken steps to modernize Brazil’s financial system, which would make the CBDC an almost natural consequence.

Campos Neto quoted the PIX instant payment system and open banking under these measures. From next November The central bank plans to allow peer-to-peer and business-to-business transactions within 10 seconds or less using a cell phone, internet banking, or ATM. An open banking system allows user information to be exchanged between banks, making it easier for customers to switch between them.

The central bank president says Brazil could have a CBDC in two yearsThe central bank president says Brazil could have a CBDC in two years

Campos Neto said:

“A CBDC differs from ‘trusted’ cryptocurrencies like Bitcoin in that it is just a new way of representing the currency that has already been issued by the national monetary authority.”

The central bank has already started laying the foundation for a CBDC. In August, he announced that he had formed a group of specialists to assess how a CBDC would fit into the domestic payments ecosystem and what impact it could have on the Brazilian economy. Campus Neto said they expected the group’s conclusions within 6 to 12 months.

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