Brazil has come a long way in the crypto sector in recent years. He was able to launch important projects to stimulate the adoption of the new asset class. Last year, for example, it decided to legalize crypto payments. Also, this year, he has made considerable progress on his CBDC project. As proof, the Brazilian government has just announced the launch of the test phase.
The Digital Real test phase should be completed by 2024
At the end of last month, the CBDC project in Brazil took the final step towards a possible issuance. Now, the Brazilian Central Bank announces the launch of the test phase of Digital Real. Reuters reported the news on Monday, March 6, 2023, citing the words of the CBDC project coordinator. It turns out that Fabio Araujo suggested that the pilot project should be completed by 2024.
Indeed, the coordinator stated that Digital Real will come into widespread use in 2024, after testing. That said, during the test phase, individuals will be able to buy and sell federal bonds. Then, an evaluation of the CBDC project will take place.
Will digital currency offer many advantages?
The CBDC project coordinator praised Digital Real in his recent statements. Araujo asserted that the CBDC will reduce costs and promote “financial inclusion for people“. “You have services that are very expensive to perform, such as repurchase transactions, which today are reserved for banks, but could be performed by anyone with technology based on digital currencies», added the manager.
Fabio Araujo clarified that Digital Real will create a favorable environment for reducing the cost of credit. He also talked about reducing the cost of improving investment returns. He emphasized:There is great potential for new service providers, fintechs, which democratize market access and offer new services“.
Several countries, outside of Brazil, are working to pilot their CBDCs quickly. For example, the Central Bank of Japan plans to launch the test phase of its CBDC this year, in April. Similarly, at the very beginning of this month, Australia announced a CBDC (eAUD) pilot project.
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