According to a statement by Roberto Campos Neto, governor of the Central Bank of Brazil, the digital real, Brazil’s central bank digital currency (CBDC), is not a token dedicated to general retail use but a wholes It will be more of a wholesale asset, he said. Campos Neto noted that the country’s private banks will be able to issue their own stablecoins secured by digital real deposits.
Digital Real Not for Retail
Brazil plans to issue a very differently designed CBDC compared to other CBDCs such as the digital renminbi, also known as digital currency electronic payments. The Brazilian CBDC, a digital real, is intended for wholesale and will not be used for retail. This information was revealed by Roberto Campos Neto, Governor of the Central Bank of Brazil, at the Crypto Summit in Rio
Regarding the expected uses of the digital real, Campos Neto stated.
Banks will be able to issue stable coins on deposit and will develop the technology to do so. And once that is developed, the protocol for issuing stablecoins on deposit will be essentially the same as monetizing various other digital assets.
Moreover, Campos Neto explained that the digital real will have a very unique focus, as it aims to monetize assets as collateral without harming the credit function of private banks.
Tokenization and CBDC Disruption
Campos Neto also mentioned tokenization as one process that could potentially improve the state of CBDCs. Referring to mortgages, Campos Neto said that the implementation of a tokenization model would make paying for and obtaining reverse mortgages a simpler task, reducing fees and waiting times and simplifying the paperwork involved in that process.
In this regard, Brazil recently launched the Brazil Blockchain Network. This project aims to create a common foundation on which other institutions in the country can build their projects. The project may also use tokenized assets and digital reals in the future in order to achieve the aforementioned goals.
Finally, Campos Neto criticized the disorder and lack of coordination experienced by central banks in the process of designing their respective CBDCs. He explained that.
When I meet with other central banks, one is trying to develop a decentralized system and another is talking about automating a multi-layered payment system. When you develop in this uncoordinated way, it doesn’t get any better than a centralized crypto platform.
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