The Central Bank of Brazil started a discussion about the digital real’s creation, their national CBDC, according to the representative in the entity.
The economist Fabio Araujo, representative of the Central Bank of Brazil, highlighted the possible development of a Real Digital during a public hearing before the Committee on Science, Technology, Innovation, Communication, and Information Technologies of the Brazilian Senate.
At the same time, he took advantage of being on that Senate committee to speak about the bank’s position against cryptocurrencies, calling them speculative.
The Real digital
Araujo stated at the hearing that the bank is still discussing society’s need for a central bank digital currency (CBDC). Araujo also unveiled that the Central Bank of Brazil still sustains meetings with various entities and personalities that could help build the Real Digital project.
Senator Rodrigo Cunha stated that the use of digital currencies is a discussion that needs a resolution due to the lack of information on the matter. He said there is still a strong need to discuss the issue.
He stated that digitization is a reality in the life of the citizens, in various fields, but there is still a lack of information on how it will work with money in circulation in a country like Brazil
In this regard, it is also worth considering that the Brazilian Minister of Economy had already revealed in November 2020 the possibility of a Brazilian CBDC for 2022. This news also came from the president of the central bank himself a year ago.
Cryptocurrencies Still Have a Negative Reputation
According to the Central Bank spokesperson, they are considering that CBDC does not mean at all that they approve cryptocurrencies. The economist explained that the entity’s position remains to be negative in this regard.
Brazil is a pioneer country in South America when it comes to the creation of a Bitcoin ETF (exchange-traded fund).
It is also ranking among the 20 nations in the world with the highest crypto adoption. At the same time, the authorities have been aware of the increasing rate of scams.
Brasil, and the Study Conducted by Chainalysis
In a report made by the Chainalysis team, there is a measure of the countries that register the highest levels of adoption. There are some aspects that the study takes into consideration, like the volumes of transactions mainly carried out by natural persons.
Although the first five places accommodate Vietnam, India, Pakistan, Ukraine, and Kenya, one aspect that draws a lot of attention is the presence of Latin American countries within the ranking.
In this sense, Chainanalysis ranked Venezuela in the seventh position. Argentina is in 10th place; Colombia follows in 11th place, and finally, there is Brazil in position 14.
By: Jenson Nuñez
