“Central Bank fell for blockchain crooks,” says Unicamp professor

Jorge Stolfi, a professor at Unicamp and a famous critic of cryptocurrencies, is concerned about the development of Real Digital, Brazil’s CBDC. In tweets published last Friday (24th), Stolfi said Brazil’s Central Bank “fell for crooks” and will spend millions on companies in the field.

According to BCB documents, nine companies have been selected to form Real Digital. In addition to banks such as Santander and Unibanco, the municipality also collaborated with cryptocurrency companies such as Aave, Mercado Bitcoin and ConsenSys to conduct initial tests.

Like Brazil, different countries choose blockchain technology over others. The reason may be related to the security of Bitcoin, the cryptocurrency that brought this mechanism to life and has been in full operation for 14 years.

Jorge Stolfi believes Brazil’s Central Bank has fallen into a coup

Known for his hatred of cryptocurrencies, Jorge Stolfi has already said that Bitcoin will cost millions of lives. However, the Unicamp professor is now working on the realization of Real Digital.

Through his social networks, Stolfi claims that the BCB has become a scam and will spend millions of reais on companies run by crooks.

“The Central Bank of Brazil (BCB) unfortunately fell for the crooks selling “blockchain technology”, and will spend millions paying these companies to develop pilot projects, etc. for Real Digital (CBDC). Unhappy.”

O #Brazilian central bank (#BCB) unfortunately fell prey to scammers selling ‘technology’ #blockchain“, and will spend millions paying these companies to do pilot projects, etc #RealDigital (#CBDC). Unhappy. >>

— Jorge Stolfi (@JorgeStolfi) February 24, 2023

While several countries rely on blockchain technology to build their digital currencies, Jorge Stolfi considers the tool to be “a technological fraud”.

Without citing examples, the Unicamp professor states that there are other better technologies that may be more satisfying “in all aspects”if “cost, safety, simplicity [e] speed”.

“The only ‘use’ of ‘blockchain technology’ is to take money from investors, managers and governments who don’t understand software enough to realize it’s useless”Stolf concluded. “It’s crystal therapy for software.”

Blockchain technology is the world’s most important bet

According to the Atlantic Council website, which collects data on the development of central bank digital currencies (CBDC), most countries have not yet decided what technology will be used in their currency.

But already 18 countries have opted for blockchain technology, also known as DLT, which stands for Distributed Ledger Technology. While only 5 opted for a conventional technology, as is the case in Jamaica.

Ultimately, Bitcoin’s 14 years of security may be why central banks choose blockchain technology. In addition, several other cryptocurrencies also serve as case studies.