Roberto Campos Neto, Governor of Banco do Brasil, Central of Brazil We have discussed the role that the digital real, a bank digital currency (CBDC), may play in the future of personal finance. At the event, Neto explained the concept of “open finance” and demonstrated a “super app” with PIX (payment network) functionality, as well as integration with other stablecoins already available.
Digital Real May Connect Directly with Cryptocurrencies
His proposed CBDC in Brazil, Digital Real, ostensibly has more and more features growing to have Roberto Campos Neto, Governor of Banco do Brasil, showed the concept the bank has for the finished version of the currency. On November 25, at an online event, Campos Neto introduced the ideas institutions have for currency under the name of ‘Open Finance’.
This idea involves integrating the still-developing digital real with traditional and decentralized financial structures and institutions. A “super app” that allows customers to hold stablecoins and CBDCs was also showcased at the event, showing that the system will connect with the already available PIX payment network.
Campos Neto describes the app mockup as follows:
This basically means that this integration I’m talking about Here’s a teaser of what it will look like. Instead of installing multiple apps from multiple banks on your phone, you’ll be using some kind of integrator.
Thus, the app allows a user to get a complete picture of their traditional or cryptocurrency-based savings in one place.
Going Digital
The digital real concept has been in development for quite some time, but there is no projected completion date. , central banks and other organizations continue to test different implementations and features of this new coin. But Campos Neto said the currency could be a bridge to decentralized finance as the country pushes to digitize it.
Campos Neto explained:
The digital real part is the bridge to his defi environment. We bring the digital world to the banking system. Some other central banks are doing the opposite. They are really pushing digital out of banking.
However, contrary to what Campos Neto states, some central bank digital currencies have already been tested by countless central banks. The European Union is currently considering implementing a digital euro and will soon regulate it. The Federal Reserve Bank of New York is also piloting an interoperable network for central bank wholesale digital money, and proposals to do away with physical money have surged in Argentina.
Image Credits: Shutterstock, Pixabay, Wiki Commons