Brazil will launch its CBDC this year

The president of the Central Bank of Brazil, Roberto Campos Neto, reported that the pilot program of a digital currency issued by the institution will be applied this year.

As indicated by the president of the entity, this is expected to start during the second half of this 2022.

The value of the upcoming CBDC or Central Bank Digital Currency would be tied to the national fiat payment system STR (Reserve Transfer System). Neto also confirmed that ‘Digital Real’ would have a fixed supply and only a certain amount would be minted, quite similar to bitcoin.

“This [using the STR in Real Digital] is a way to create the digitization of the currency without creating a break in the banks’ balance sheets. This project should have some kind of pilot in the second half of the year,” Campos Neto said.

The president of the central bank assured in his speech that cryptocurrencies are “more prominent” when they are used as a form of investment, rather than as a form of payment.

K. Tovar

Source: Cointelegraph