Speaking at an event in São Paulo last Thursday (2), Capital CTO and co-founder Jefrey Santos emphasized that the digital currency issued by Brazil’s Central Bank (CBDC) can be considered as a universal passport to a new economy.
The digital bank Capital is actively participating in discussions about the development of digital currencies, the so-called CBDCs, an acronym that refers to “central bank digital currency“.
In Brazil, the Central Bank announced that it will open a debate forum on the subject next week and plans to make digital reality available to the public by the end of 2024.
What does Capital’s co-founder say about the future of the CBDC economy?
In talks with the central bank and participation in the LIFT of the digital Real, the co-founder of Capital believes that CBDCs will play an important role in the economy.
Among them, the ability to connect international economies, with interactions in an easier, cheaper and faster way than is practiced today.
“Digital currencies will enable instant payments and reduce the number of middlemen in the process, reducing the cost of financial transactions.”
Another benefit, according to Capital’s CTO, is smart contract execution, a technology that relies on the sequence of programmed codes to provide flexibility in the execution of various operations and in the development of alternative blockchain applications.
With that in mind, Jefrey said in a note to Livecoins that he believes CBDCs, such as the digital Real, for example, can open the doors even to unbanked people.
“CBDCs are opening doors to a global economy and giving access even to people who don’t currently have a bank account in the system. It is estimated that approximately 1.4 billion adults in the world today do not have a bank account, credit or debit card. The future of the global economy depends on the evolution of CBDCs.”
For the executive, Brazil’s central bank project can make a reference in blockchain construction.
Lift Challenge in the final stage
The development of CBDCs is already being carried out by Capital with the Central Bank of Brazil in the LIFT Challenge Real Digital project.
The project presented by Capital, in collaboration with Tecban, was one of nine projects selected out of a total of 47. The proposed solution aims to enable the development of a smart contract-based technology for validating transactions with the Real of the future.
The applied principles of cryptography ensure the security of transactions and provide solutions to the problem of trust in intermediary systems when purchasing online products.
The Lift Challenge is in its final phase and the publication by the Central Bank of the results reports of the nine developed proposals is scheduled for April.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
