“Cryptocurrencies have a bad point and should keep those who bet on them sleeplesssays a video published by the Central Bank of Brazil on Friday (14). In the material, the municipality explains the basics of cryptocurrencies, their advantages and disadvantages.
Entitled “BC Explains You #75 – What they are and how crypto-assets, such as cryptocurrencies, work,” the central bank mocked internet users who leave “affectionate” messages whenever the topic is brought up.
Anyway, it is the first video content that explains the topic in detail. In addition, central bank digital currency (CBDC) is one of the topics covered in the new material.
Cryptocurrencies have advantages, but the disadvantage is sleepless, central bank video says
The central bank’s informational video begins by saying that many may have come across information about cryptocurrencies in recent months, but still do not understand the term.
The server Gustavo, from the central bank, explains what he calls cryptoassets, synonymous with virtual assets. In a relaxed tone, he says that “crypto asset” is a financial asset on the internet, in a decentralized network.
Due to its distributed characteristic, the official says that the advantage of the crypto asset lies precisely in its basic technology, the blockchain, which is secure for storing information.
According to his explanation, cryptocurrencies are just one of the types of crypto assets, with NFTs being others, for example. He recalls that the networks are not dependent on a central bank and are very resistant to fraud.
Speaking of cryptocurrencies, he says they should keep investors up at night. According to the server, the market price of cryptocurrencies is very volatile and without central bank regulation, it poses risks to investors.
Commenting on the issue, the central bank says many people with this problem lose money within minutes.
“If we combine the advantages of crypto assets with the reliability of a fiat currency, we are talking about a CBDC”
Continuing with the explanation of cryptocurrencies, the central bank server says that the reliability of fiat currencies, combined with the advantageous decentralization of cryptoassets, create a CBDC.
The acronym stands for the so-called central bank digital currencies, which are being studied in many countries. In Brazil, for example, Real digital is in the pilot phase and should arrive at the end of 2024.
The central bank is preparing a similar video to address only the issue of CBDC and digital Real, which should be released on the municipality’s official YouTube channel in the coming days.
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.
