Nations all around the world are frantically trying to figure out how to use blockchain technology to boost their economy. Numerous central banks are investigating the currency alternatives that cryptocurrencies provide as a result of the increased popularity of cryptocurrencies.

Brazilian CBDC is scheduled to debut in 2024

Banco Central do Brasil (BCB) President Roberto Neto recently said that the CB intends to launch a CBDC by 2024. At a recent lecture on data protection and security in the cyber world, Campos Neto made his declaration.

According to President Neto the first measures involve a pilot program that will be run in collaboration with financial institutions.

The projected CBDC will thereafter be used more extensively after that. He continued by saying that in his opinion, the integrated, digitalized, paid-in system will greatly contribute in the advancement and inclusion of individuals in the financial sector.

The governor of the BCB is certain that the adoption of digital currencies and CBDCs will have a number of positive effects, including increased inclusion, reduced costs, and efficient risk management.

If the Brazilian government will be able to intend these plans by the next two years, it’ll be an unforeseen development for the crypto-industry in Brazil and that will be a great chance for Brazil to better connect to the crypto-world.

Advancement of CBDC in Brazil

The South American country had made substantial progress in starting the creation of the CBDC earlier this year, in March. The BCB reportedly chose nine partners to create the Brazilian CBDC (“Digital Real”) as it is stated by Brazilian media website Poder360.

These include Mercado Bitcoin, Banco Santander Brasil, the biggest cryptocurrency exchange in Latin America, and the well-known DeFi protocol Aave. The BCB received 47 suggestions for the launch of Digital Real, and these were chosen among them.

On Nov 30, the lower house of Brazil’s National Congress passed a law authorizing the use of cryptocurrencies as a means of payment. For the Brazilian businesses active in the cryptocurrency sector, this action gave much-needed regulatory clarification.