Brazil Plans CBDC Pilot for Second Half of 2022
The central bank's president stated that the asset will be piloted before the year's end.
Key Takeaways
- The president of Brazil's central bank, Roberto Campos Neto, discussed the country's CBDC plans during an Apr. 11 event.
- Neto suggested that Brazil's central bank digital currency will likely be piloted in the second half of 2022.
- Last month, Brazil selected nine proposals from various partner projects to support its CBDC efforts.
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Brazil will likely begin its CBDC pilot in the second half of 2022, according to statements from the president of its central bank.
CBDC to Be Piloted This Year
Roberto Campos Neto, president of the Central Bank of Brazil, commented on Brazil’s plans for a central bank digital currency during an event presented by TradersClub (TC) and Arko Advice on Apr. 11.
There, Neto suggested that a pilot for the country’s CBDC is expected to take place in the second half of 2022.
Neto said that the bank has been studying the process leading to a CBDC for a long time but that the upcoming stages of the project will increase the bank’s knowledge exponentially.
Neto said that the project will digitize the Brazilian real “without creating a break in the banks’ balance sheets.” He added that the digital currency will be guaranteed by the Brazilian real and that banks will be able to issue stablecoins on top of deposits.
It is unclear whether the pilot will make the asset available to members of the public or restrict the asset to the bank itself.
Neto also commented on the growing popularity of cryptocurrency, stating that he believes there is “no central bank in the world today that is not in this process of studying a digital currency.”
Other Developments In Brazil
While today’s news suggests that Brazil’s CBDC will be piloted before the end of the year, earlier reports suggest that the asset will not be complete and ready for use until 2024 at the earliest.
In addition to the main pilot, Brazil has also selected nine proposals from partner projects to support its CBDC efforts.
CBDC development is not Brazil’s only crypto-related pursuit: Rio De Janeiro plans to allow residents to pay real estate taxes in Bitcoin beginning in 2023, according to reports last month. The city also plans to invest in crypto directly based on earlier reports.
Brazil is also being noticed by companies outside the country. Last month, it was reported that Coinbase and Binance were exploring the potential acquisition of various Brazilian crypto firms.
Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and other cryptocurrencies.
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