The President of the Central Bank of Brazil, Roberto Campos Neto, spoke about the country’s digital currency while attending the LIDE Brazil Conference NY event last Tuesday (15).
According to Campos Neto, the issue is still complex for many people, but it is part of a plan by the Central Bank.
One of the four blocks of the project concerns the PIX, a means of payment. For Campos Neto, PIX is a system with the potential to be global, universal, atomized, fast and cheap.
In addition, the PIX system is currently programmable, which already brings it advantages. Open Finance would be another item in the national program, as would the change in the foreign exchange law for currency internationalization.
Campos Neto talks about digital currencies
Roberto Campos Neto closed the four blocks of the Central Bank of Brazil’s digital currency project, stating that the project should help Brazilians.
According to him, the topic of currency has a storyline that runs through cryptocurrencies. However, the current president of the BCB said the debate is wrong to focus on the instrument.
That’s because the part that he understands is important is in the DLT technology, which means the ability to spread things.
“The most important thing is not the instrument, but the technology. Regardless of the tool that will prevail, DLT technology, that is, if you manage to distribute your stuff digitally, this is a tool that’s here to stay.
According to Campos Neto, there is a big movement to extract value from assets through digital means. He understands that works of art, books, and the metaverse itself are clear examples.
“We need to move away from an economy based on bills, for an economy based on tokens, with digital currencies close to the regulator,” emphasizes BC president
By analyzing the digital currency, the Central Bank of Brazil is trying to answer a big question. The question to be answered, according to Roberto Campos Neto, is whether in the future people will see their assets and liabilities in the form of tokens, not accounts.
Believing the answer to the question is “Yes”, the digital Real is planned to solve this pain.
That is, Brazil’s new digital currency allows banks to issue money on top of their deposits, symbolizing the whole process. For the president of Bacen, the efficiency gains are in risk management, back office, multiple-tiered settlement, among others.
“Without going into too many technical criteria, our digital currency does the opposite of what other countries do. Many countries are pushing away asset custody from banks. We want to bring it closer to the banks. We understand that the best way to use technology is to bring it closer to the regulator.”
The event was attended by ministers from the STF, Binance advisor Henrique Meirelles and many other analysts who discussed Brazil’s future.
Source: Live Coins
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
