The Brazilian Central Bank has revealed that its central bank digital currency (CBDC) – the digital real – is being designed to help domestic businesses grow. Governor Roberto Campos Neto also confirmed that the digital real is set to begin the first stage of its pilot in March. He claimed that the Brazilian digital currency model was being created with the aim of “fostering new business” in the financial services sector, and that it is “unlike” those being used in “other countries.”
The Central Bank is also working hard with the regulatory Securities and Exchange Commission (CVM) on the policing of cryptoassets. Campos Neto stated that he had told US Treasury Secretary Janet Yellen that he noticed certain “problems” with the crypto sector, such as custody being “overly concentrated”. He claimed that if banks had been allowed to become cryptoassets custodians, it is possible that the FTX “problem” might have been avoided.
In addition, the Central Bank is working on an “instant payment” solution with partners in Colombia, Uruguay, Chile, and Ecuador. These nations want to find more effective ways to enable trading partners in the LATAM region to process “recurring payments.” Meanwhile, Brazil and Argentina have discussed creating a shared currency, with crypto advocates suggesting they shelve the plan in favor of adopting bitcoin (BTC).