The Brazilian central bank has set up a team tasked with reviewing digital currencies. This step is, “Is Brazilian Real going digital?” This is not exactly the case, although it raises questions.
Brazil’s central bank has set up an R&D team to gain a deeper understanding of the cryptocurrency market, observing citizens’ positive approach to digital payment methods and currencies in recent years. One of the main goals of the team is to examine the pros and cons of digital currencies.
The Brazilian central bank thinks digitization will be more affordable than the cost of printing and maintaining banknotes or coins. According to the official data announced by the central bank, the cost of printing and maintenance of paper money is approximately 90 billion reais annually. The mentioned figure corresponds to 1-2% of the country’s gross domestic product; this is a very high rate.
This Team Is Not A Digital Currency Herald
The fact that the central minister has started researching digital money does not mean that a government-backed digital currency will come out. Rafael Sarres de Almeida, one of the central bank officials, stated that the establishment of such a team does not mean that the real will become digital.
Almeida emphasized that the main purpose is to enlighten the public about the digital money market. The established team, digital currencies, planned to be launched in November; It will also explore how the government-backed instant payment system can be evaluated within PIX.
PIX, designed by Brazil to increase efficiency and competition in the retail market, is intended to replace WhatsApp payment transactions. Brazil blocked WhatsApp’s payment services two months ago because of concerns about data privacy and legal incompatibility. With PIX, Brazil plans to easily settle the tracking and control processes that it has difficulty in the WhatsApp payment system.