Brazil to launch its cryptocurrency in 2024-Central Bank
2022.12.13 09:38
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Brazil to launch its cryptocurrency in 2024-Central Bank
Budrigannews.com – Brazil’s national bank means to send off its computerized cash in 2024 after a shut experimental run program one year from now with monetary organizations, bank president Roberto Campos Neto said on Tuesday, adding that the venture had gotten global consideration.
Campos Neto stated that the design of the central bank’s digital currency would encourage banks to tokenize their assets, resulting in significant efficiency gains, at an event hosted by the news website Poder 360.
He said, “If the digital currency is actually a tokenized deposit, it inherits all the regulation that already applies to deposits,” and he added that it shouldn’t affect banks’ balance sheets or disrupt monetary policy.
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According to Campos Neto, representatives of the International Monetary Fund (IMF) have contacted the central bank and provided feedback that this model appears to be the easiest to implement and that other central banks ought to investigate it.
“Eventually, we were even complimented to have thought about a framework that other national banks are presently considering,” he said.
Campos Neto asserted that the tokenization of deposits should also reduce the settlement, auditing, and funding costs of banks.
The head of the central bank also said that once users can get cheaper credit through the system without paying a fee called the merchant discount rate (MDR), they will use the bank’s popular instant payment system, Pix, more.
The companies that supply card machines, such as Cielo, Stone, and Getnet, receive payment for the MDR fee from merchants.
Pix, which will go live in November 2020, is free for individuals, but the system lets banks and other payment providers set their own fees for sending and receiving money from merchants.
The use of the Pix system has surpassed that of credit and debit card transactions in Brazil, where it has become extremely popular.
