Banco Central do Brasil (BCB) established an intergovernmental CBDC study group on Aug. 20. The 12-member team is tasked with investigating CBDC security risks, economic implications and societal benefits against Brazil’s existing payments landscape.
„The team will also evaluate CBDC issuance and even propose an issuance model for Brazil. A final report is due in to BCB officials in 180 days, coindesk.com reports.
The object of a worldwide study, the issuance of digital currency by central banks (central bank digital currency – CBDC) may be a possibility to improve the current model of commercial transactions between people and even between countries.
„In order to foresee the future of financial relations, the Central Bank formed a working group to discuss the impacts of an eventual digital currency issue in Brazil”, according to the press release.
BCB intends to investigate the scope of a CBDC, as well as the benefits for society, considering the specificities and challenges of the national context.
The initiative will also assess how an electronic currency can bring complementary benefits to those that are being introduced with the implementation of Pix, an instant payment system, which starts operating in November.
Safety
Among the objectives of the working group are „the proposal of a model for the eventual issuance of digital currency”, with identification of risks, including cybersecurity, data protection and normative and regulatory compliance, and the analysis of CBDC’s impacts on inclusion and financial stability and the conduct of monetary and economic policies.
A CBDC distinguishes itself from cryptocurrencies without national trust (guarantee), like bitcoins, because it is just a new form of representation of the currency already issued by the national monetary authority, that is, it is part of the monetary policy of the issuing country. This new form of currency can bring about substantial changes in the National Financial System. In this way, the study will compare the potential benefits of a CBDC in improving the well-being and preserving the financial citizenship of its society with the risks inherent in this new form of payment.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
