Brazil’s Central Bank Tasks Group With Laying Out Road Map to Digital Currency Issuance
Brazil’s Central Bank Tasks Group With Laying Out Road Map to Digital Currency Issuance
Brazil, home to South America’s largest economy and a bullish-on-fintech financial bureaucracy, is studying the benefits and challenges of issuing a central digital currency (CBDC).
- Banco Central do Brasil (BCB) established an intergovernmental CBDC study group on Aug. 20.
- The 12-member team is tasked with investigating CBDC security risks, economic implications and societal benefits against Brazil’s existing payments landscape.
- The team will also evaluate CBDC issuance and even propose an issuance model for Brazil. A final report is due in to BCB officials in 180 days.
- CBDC may “improve the current model of commercial transactions between people and even between countries,” BCB said in a press statement, calling CBDC issuance “eventual.”
- Brazil’s monetary policy makers are already moving to digitize payments in South America’s largest economy. Pix, a central bank-run instant payments system, is coming online in November.
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