Projects based on Ordem e Progresso – Central Bank Digital Currency (MNBC) are springing up all over the world. Whether a small country or a major one, many do research and develop initiatives in order to avoid falling behind. Brazil has risen to the top of the class, with a pilot project set to begin in the second part of this year.
BEAUTIFUL WORLD ON THE BRAZILIAN MNBC’S BEDSIDE
To carry out their plans and stack the odds in their favor, the Brazilian government pulled out all the brakes and conducted a public consultation in March. It brought together huge names in traditional banking, multinational payment businesses, and some of the most prominent figures in the crypto community. We’re talking about Mercado Bitcoin, Brazil’s largest crypto platform, as well as Visa, Microsoft, ConsenSys, and Aave, to mention a few. The LIFT (Laboratory of Financial and Technological Innovation) was in charge of piloting this multidimensional initiative under the auspices of the Brazilian Central Bank (BCB).
Finally, the president of the BCB made the announcement during an event hosted by the Traders Club – a forum for financial market information and education. Real Digital will, indeed, be released. It will even be put to the test this year! Most likely in the second semester. However, it will not be available to everyone. Initially, it will only be available to financial institutions. Its value will be determined by the value of the Brazilian Real.
A REAL DIGITAL TEST WILL BEGIN THIS YEAR
The future MNBC will be issued through the Reserve Transfer System (STR). For those interested in economics and financial mechanics, here is a link to further investigate the topic. Others should be aware that it is a streamlined and safe money transfer mechanism for the country’s main financial institutions that are registered with the BCB. And it is here that Real Digital will be put to the test initially.
The president of the BCB, Campos Neto, further stated that the MNBC will have a “limited issue in number.” A little “like Bitcoin.” He also recalled that bitcoins were more of an investment tool than a way of payment. All of this, though, might alter very quickly:
“What we think is that there is a curve in which you start as an investment vehicle and at some point it becomes a means of payment because there is a process for the financial agents to get used to it and accept it in payments. »
Neto went on to explain that:
“The digitization of the economy is a natural and irreversible movement as the world moves towards integrating new technologies into society such as the Internet of Things and 5G. »
As a result, the application of MNBCs and cryptocurrencies will be clear in the next few years. As a result, it is up to lawmakers to consider future changes in the financial industry. “I do regulation today in an atmosphere that will drastically alter in two years,” the BCB president stated.
Get a head start without moving too quickly. Allow for reflection without limiting technical advancement and innovation. This is a major issue for central banks all around the world! What about authorities seeking for the proper combination to interfere in the cryptocurrency market? And it is in this somewhat hazy background that the huge platforms seize the chance to ceaselessly extend their empires.