Brazil’s CBDC may be coming sooner than expected.
The president of the central bank of Brazil (also known as Banco Central) has said Brazilians should anticipate the coming of their CBDC within the next two years.
The news was carried by Correio Braziliense on September 2 about Brazil’s readiness to introduce CBDC by 2022. According to the central bank’s president, Roberto Campos Neto, there will be a restructuring of the bank to suit modern needs and that only means the CBDC is inevitable.
The restructuring done so far include the PIX fast payment system and open banking. The aim of the central bank is to allow peers and businesses carry out their transactions in a maximum of 10 seconds with their cell phones, laptops or ATMs from November. With the open banking system, customers can do business with different banks at the same time since banks will easily share information about them.
According to the central bank’s president:
“A CBDC distinguishes itself from cryptocurrencies without national trust, like Bitcoin, because it is just a new form of representation of the currency already issued by the national monetary authority.”
Plans to build the CBDC by the central bank have already kicked off. Last month, the bank appointed people to see how the CBDC can be used in the country as a payments solution and how it will affect the country’s economy. Campus Neto gave the group 6-12 months to conclude their findings and report to him.