Brazils’s Economy Minister Paulo Guedes recently confirmed the country’s plan to launch a central-bank-backed digital currency. Brazil has become the latest country to announce a CBDC. Guedes revealed plans of launching a CBDC during a special ceremony that celebrated the opening of the 100 millionth digital savings account in Caixa Economica Federal. He said that the central bank is once again autonomous and that the digital dimension is booming. The economy minister revealed that Brazil would have its own digital currency and remain ahead of many other countries.
Brazil plans to launch its CBDC by 2022.
The central bank has not revealed much information about the national digital currency. However, the president of Brazil’s central bank Roberto Campos Neto had revealed that they expect the CBDC to be in circulation by the year 2022. According to the central bank’s statement, it will only be used for foreign exchange transactions in and out of the country as for digital real. Several countries around the world are currently exploring the idea of having national digital currencies.
Central banks continue to explore CBDCs.
Central banks across many countries are currently exploring CBDCs, and many of them have progressed quite far. Earlier, the U.S. Federal Reserve chairman, Jerome Powell, suggested the United States was waiting to get the right proposals in place, rather than becoming the first to launch in regard with a digital currency. Several other major central banks, including the Bank of Japan, the Philippines’ central bank, are working on a CBDC. As reported earlier, the Caribbean island Bahamas became the first nation to launch its central bank-backed digital currency. The People’s Bank of China just completed its pilot project, where millions of people used digital yuan for the first time.