Brazil plans to release national cryptocurrency by 2022

The head of the local Central Bank shared this information.

A national cryptocurrency may appear in Brazil within a couple of years. By 2022, the country plans to create the necessary infrastructure to launch a new financial instrument. This was stated by the head of the local Central Bank, Roberto Campos Neto. Information about the initiative appeared in local media.

According to the head of the Brazilian Central Bank, the country has already taken the necessary measures to modernize the financial system. The issuance of the central bank digital currency (CBDC), also called the national cryptocurrency, is going to be a natural result of the transformation of the chosen field, in his opinion.

Also, the country is developing an instant payment system PIX and technical solutions for organizing open banking. The regulators intend to provide the market with improved conditions for conducting financial transactions. Including tools to speed them up. Open banking is necessary for regulators to create platforms for the exchange of information between financial institutions.

The volume of purchases of bitcoin for the national currency of Brazil. Data: LocalBitcoins

The volume of purchases of bitcoin for the national currency of Brazil. Data: LocalBitcoins

According to the head of the Central Bank of Brazil, CBDC will differ from cryptocurrencies such as bitcoin. The banker believes that the financial instrument will become a new form of the country’s national currency. Decentralized digital assets such as BTC, according to the expert, cannot count on trust on a national scale.

Recall that the Brazilian Central Bank began studying the prospects for issuing a national cryptocurrency at the end of August 2020. Notably, many crypto projects face regulatory challenges in the country. For example, in July 2020, Brazil partially banned the popular exchange Binance. The regulators have questions about the derivatives offered on the trading platform. Also recently, WhatsApp payment service was suspended in Brazil.

While Brazilian experts are discussing the possibility of issuing a national cryptocurrency, the Chinese Central Bank is actively testing a new financial instrument – national crypto juan.

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