Brazil It could issue its own digital currency in 2022, according to the governor of the country's central bank.
Roberto Campos Neto, Governor of the Central Bank of Brazil (BC), has explicitly stated that digital currencies will be the future of the financial system, and that instant bank payments, open banking and exchange rate modernization could arrive in the next two years.
This was reported by Correio Braziliense, who cited the words spoken by the governor on Wednesday during an event promoted by Bloomberg.
Campos Neto said:
“To have a digital currency, you need an instant payment system that is efficient and interoperable; an open system, where competition can be created; and a currency that has credibility, is convertible and international. After that, I think you have all the ingredients to have a digital currency. We believe that we will have it in 2022 ”.
According to the governor, the issuance of a digital currency would be a consequence of the ongoing process of digitization and modernization of the financial system, already initiated in Brazil thanks to the innovation program launched by the central bank itself some time ago, long before the emergency by the coronavirus.
The launch of the system that will allow instant bank payments (PIX) It is already scheduled for November in Brazil, and the implementation of Open Banking should be launched by the end of the year, with the precise objective of increasing competition within the national financial system.
Another key point in this innovative process is the bill, presented in 2019, to modernize the Brazilian exchange system. This project must be voted on in the next two weeks, so Campos Neto believes that the conditions for the issuance of a digital currency by the central bank of Brazil could already be in force in 2022.
In fact, two weeks ago the same CB created a working group to analyze the possible impacts of the possible issuance of a digital currency in Brazil, with the task of presenting its conclusions on this issue within a period of six months, or at most one year.
According to the CB, a central bank digital currency (CBDC) differs from trustless cryptocurrencies, such as bitcoin, because it is just a new form of representation of the fiat currency already issued by the national monetary authority, that is, it is a part comprehensive of the country's monetary policy. Therefore, the “Real Digital” would be the same currency that is already in circulation (Brazilian Real), but issued only in digital form.