Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year

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Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year – The Central Bank of Brazil has stated that a pilot test of its planned central bank digital currency, the digital real, will be conducted. The bank’s president, Roberto Campos Neto, also claimed that this new test will involve a set supply of the described token, and that the pilot will be carried out over the next six months.

The Central Bank of Brazil has provided information on the progress achieved on its CBDC initiative, the digital real. Roberto Campos Neto, the company’s president, pointed at an unspecified test involving the currency’s use in the final six months of this year. 

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He stated during an event:

“This is a method of achieving money digitization without disrupting bank balance sheets. In the second half of the year, this initiative should have a pilot.”

Campos Neto also hinted at how this currency will be utilized, stating that it will be tied to the reserve transference system, which is a type of fiat-based payment system. Brazil could become the first country in South America to implement CBDC programs as a result of this pilot program.

Campos Neto also shared his thoughts on the state of the Brazilian cryptocurrency sector. Cryptocurrencies, he continued, are considered as financial assets rather than payment methods. This, however, may alter as more adoption occurs both worldwide and locally.

Since last year, when it redacted the criteria that a Brazilian CBDC will have to follow and declared it was still investigating and discussing the prospect of issuing such a currency, the Central Bank of Brazil has been moving forward with its digital real initiative.

Also Read: Kazakhstan to Increase Tax for Miners, Considers Tying Levy to Crypto Prices

Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year – However, in March, the institution chose nine institutions from 47 submissions to create projects that will demonstrate the possibilities that a hypothetical digital real might bring in several areas.

Brazil has also made strides in enacting legislation to establish a uniform cryptocurrency legal framework. Deputies and senators have stated that they will consolidate multiple ideas into one to be tabled to the Brazilian Congress in this regard. These projects’ rapporteurs anticipate that this new hybrid proposal will be approved in the coming months.

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