Brazilian Economy Minister Paulo Gedes said Brazil will issue a central bank digital currency, or CBDC.
Gedes made this remark on Thursday during a celebration of the 100 million electronic savings accounts opened at Caixa Economica Federal:
“Now that the central bank is independent again, it is also good at the digital dimension: Pix, OpenBank, fintech and digital currency. Brazil wants to have its own digital currency. Brazil is ahead of many countries. ”
This is the first time the minister has spoken directly on the matter, although he did not provide any further details about the central bank’s CBDC project.
My real digital
Banco Central do Brasil announced earlier in August that they had formed a group to study the possible spread of digital reality.
Consequently, central bank governor Roberto Campos Neto said that Brazil needs to “improve” its currency, and that this will happen in the Pix series, the new federal digital payment system:
“In our case, Pix is very important because from now on we see the integration of an immediate, open, compatible payment method with an open computer system. Somewhere in the future, they will encounter a currency that has yet to be mastered. … ”
Additionally, while the central bank has yet to announce how the actual digital version will work, Campos Neto has already announced that it will be in circulation in early 2022.
This is the first time the minister has spoken about this, but he did not provide any further details about the central bank’s CBDC project. Despite this, the minister announced a lot of news about the digitalization and modernization of the Brazilian economy.
Gedes has already said that he is planning an initial listing of the newly formed digital bank Caixa Economica Federal, and that Brazil is on the verge of joining the OECD.
CBD is being discussed at a special time to digitize the Brazilian economy. Central bank digital payment system Pix registered its first transactions on Monday and is scheduled to launch officially on November 15.
According to figures released by Banco Central, the digital rial will be mainly used for foreign exchange transactions both nationally and internationally.
“The ability to remotely manage Pix is on Pix’s evolutionary agenda, but not next year,” said João Manuel de Mello, Banco’s director of central finance organization.
Aristides Andrade Cavalcante Neto, deputy head of information technology at the central bank, also pointed out that the digital currency of the CBB should be pegged to stock exchanges.