Central Bank of Brazil Proposed Significant Migration to Digital Payments

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  • BCB proposed significant Migration to Digital Payments
  • The move to virtual payments will involve the use of CBDC.
  •  Brazil could be ready for a digital currency next year.

Brazilian Central bank (BCB) director, Joao Manoel Pinho de Mello, mentioned that a significant migration from fiat currency to digital means of payment will take place in the next few years.

Accordingly, on Thursday during the group discussion on the potential of the digital real conducted by BCB, Mello noted that the move to virtual payments will involve the use of central bank digital currencies (CBDC). This, reported by the Brazilian financial newspaper, Valor Economico.

More so, director of the Brazilian Central Bank, “We understand that the use of CBDC will occur in situations where it can bring greater efficiency and transparency to transactions. Whether from the retail perspective or its use by agents that make up the financial and payments industry”.

Furthermore, Mello stated, if the project designed well, authorized digital currencies can expand financial inclusion and reduce the cost and time of cross-border payments. Also, he added that the operation needs maximum care in the choice of design and technologies to prevent form violations of data protection laws, bank runs, and cyberattacks.

Brazilian central bank, director, Mello also declared that the use of cryptocurrencies among different countries has given special consideration to prevent unwanted substitutions of one country’s sovereign currency for that of another.

Even more, the Central Bank of Brazil added,

“According to the current BCB assessment, the conditions for the adoption of a Brazilian CBDC will achieved in two to three years”.

Henceforth, the president of the central bank, Roberto Campos Neto, insisted that Brazil could be ready for a digital currency next year.

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