President of the Central Bank of Brazil suggests the creation of a digital currency

The President of the Central Bank of Brazil, Roberto Campos Neto, suggested that the country could be developing a Digital Currency.

Thus, according to a statement made by Campos Neto during the opening of the 10th Plenary Meeting of the Pix Forum, Brazil’s instant payment system may lead to the issuance of a digital currency.

According to Campos Neto, Pix is a very important and revolutionary project for the National Financial System.

„In the financial sector we see these digital transactions growing,“ he said.

We must improve the currency

Thus, according to Campos Neto, with the digitalization of the economy, the currency must be improved precisely to satisfy this new demand of the population.

„In our case, PIX is very important because from now on we see the union of an instantaneous, open and interoperable form of payment with an open data system. Where it is somewhere ahead along with a currency that has to be perfected,“ he said.

So, according to him, the Central Bank has a project to simplify the exchange processes also to meet this demand.

„We have a project to simplify the exchange closing processes and that will be combined with a convertible currency.

Therefore, according to Campos Neto, all these changes demonstrate a much more digitalized world and, according to him, with a digital currency.

„At first we see a much more digitized world with a digital currency,“ he revealed.

The digital currency in Brazil

This is not the first time that Campos Neto suggests that the PIX and other actions of the Central Bank may culminate in the creation of a Digital Currency for Brazil.

Recently, during a videoconference with Valor Econômico, the executive talked about the expectation of creating a digital currency driven by the PIX.

Thus, during the live broadcast, the president of the Central Bank declared that a digital currency can be presented by Brazil.

However, as now, in the live he had with Valor, Campos Neto did not mention when the project will be presented.

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However, Campos Neto says that the initiatives in the Brazilian economy should boost the development of the digital currency.

„It has open banking, PIX, and a more globalized, simplified and convertible currency. The idea is that it will come in a digital currency, when all these programs meet“.

The Central Bank of Brazil has been studying the possibilities of a digital currency, CBDC, for the Real since 2017.

„Like the other central banks, the Central Bank of Brazil is studying the broad and multifaceted issue of virtual currencies,“ the Central Bank of Brazil told Cointelegraph.

Thus, the debate within the central bank began with former central bank director Isaac Sidney, in response to requests from the Bank for International Settlements (BIS).

„There are several aspects that we must evaluate, including their impacts on the conduct of monetary policy,“ he said at the time.

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The Central Bank of Brazil also addressed the issue of a CBDC in a document entitled „Currency in the Digital Age“.

„Financial institutions must register the public keys that will represent the cryptographic identities of their digital money holdings in a Central Bank system for managing digital currency accounts.

Once registered and authorized by the Central Bank, banks will be able to operate, receive and maintain linked to these accounts the amounts needed to serve their customers.

The amounts stored in the bank’s DFC stock accounts followed similar rules and controls as those applied to the physical custody of money by banks“.

At the end of last year, the Central Bank also participated in the Official Forum of Monetary and Financial Institutions, OMFIF.

During the meeting, Brazil and the other nations present at the Forum recognized that the early issuance of digital currencies issued by Central Banks (CBDCs) is almost inevitable.

In addition, Brazil is discussing the creation of a Iq Option in two multilateral groups, the G20 and BRICS.