The head of Brazil’s central bank has confirmed that the pilot project for the country’s sovereign digital currency will be launched this year, according to Cointelegraph Brasil.

Confirmation of the central bank digital currency was received during an event on Monday where Roberto Campos Neto, President of the Central Bank of Brazil, indicated that a pilot program for a central bank digital currency could be launched in the second half of this year.

The next CBDC cost will be linked to the STR (Reserve Transfer System) national payment system. Neto also confirmed that Digital Real will have a fixed amount and only a certain amount will be minted, much like bitcoin:

“Using [Real Digital for STR] is a way to digitize the currency without disrupting the balance sheets of the banks. This project should have some kind of pilot project in the second half of the year.”
During the speech, Neto made it clear that he still believed cryptocurrency was more visible as a form of investment than as a form of payment, adding that this could change if adoption increases among the masses.

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The confirmation of the central bank digital currency pilot program in the second half of the year comes a month after the central bank partnered with 9 banks to help develop digital central bank currencies. With the confirmation of the head of the Central Bank, Brazil will join the growing list of countries operating with its own sovereign digital currency.

Brazil is currently looking to monetize the cryptocurrency and digitization craze. In addition to focusing on cryptocurrency development, Brazil also introduced a crypto bill in late February to regulate the cryptocurrency market. The bill, which is now nearly three years old, outlines various aspects of what constitutes a virtual asset (VA), broker, or stock exchange, as well as which federal government agencies will have jurisdiction over the case.

Source: CoinTelegraph