The central bank of Brazil thinks that to save money, money has to change its form.
Banco Central do Brazil (Brazil’s central bank) is preparing for the introduction of the CBDC. It has revealed that it formed a committee to look into the crypto industry.
The central bank created a committee of 12 members who serve the government in different capacities. Their work is to find out how the CBDC can be used effectively as a method of payment in the country and its possible effects on Brazil’s economy.
Brazil has hinted in the past that it spends close to 90 billion reals (or $16 billion) every year just to ensure that its fiat currency is printed and adequately circulated. This amount takes 1% to 2% of Brazil’s GDP.
The committee will find out if it is more cost effective to work with a CBDC and how the economy may benefit from it.
The Information Technology Department of the central bank of Brazil said this through Rafael Sarres de Almeida:
“The subject of digital currencies addressed by central banks has been on the research agenda of many central banks for some time. However, this year, there was a greater focus on a more practical approach.”
He said China would soon launch theirs as testing has entered the final stage. He also observed that many other countries have already started the process of having a CBDC.
Three months ago, Brazil’s central bank and Ripple had a private talk on some important issues which were not made public. The central bank said it was a meeting consisting of its president, Roberto Campos Net, CEO of Ripple called Brad Garlinghouse, and three other officials from Ripple. The meeting was done through a video conference.