By 2024, the Central Bank of Brazil plans to launch a Central Bank Digital Currency (CBDC), according to bank President Roberto Campos Neto, who announced during a conference on Tuesday organized by the Brazilian news website Poder360.
“Before implementing the CBDC, a virtual currency issued by a central bank, more widely, the bank will run a trial program with a few financial institutions,” said Campos Neto.
“I think that this digitized, paid-in, integrated system, with inclusion, will help a lot in the development and inclusion of people in the financial world,” Netos remarked. Furthermore, the development took place after Brazil announced in March that it was developing a digital currency.
Other nations with their CBDCs
Brazil will join other countries with their CBDCs, such as the Bahamas, Nigeria, Jamaica, and the Eastern Caribbean. Many nations are still looking into a similar strategy that would lead to a more secure, stable market.
Previous launch by Brazil Central Bank
The Brazilian Central Bank introduced PIX in 2020, a 24/7 instant payment system with skyrocketing usage. Over 122 million users are active on PIX right now, which represents 57% of the Brazilian population. 40% of users made their first-ever electronic transfer as a result of this invention, demonstrating the great potential of technology for financial inclusion. Given its overwhelming success, it is understandable why PIX soon established itself as a benchmark for several nations and received acclaim from the Bank of International Settlements.
