The Central Bank of Brazil, the country’s highest monetary authority, has issued a note listing the general guidelines for the design of a fictional central bank digital currency (CBDC) for the country. While no concrete steps have yet been taken in this direction, at least the document acknowledges that there has been discussion about this possibility in the institution.
Central Bank of Brazil issues general CBDC guidelines
The Central Bank of Brazil is the economic authority of the South American country Released A document where it specifies the general guidelines of the future Brazilian central bank digital currency (CBDC). The note, titled “Banco Central do Brasil issues general guidelines for Brazilian CBDC”, details the characteristics and characteristics of a fictional CBDC emitted by the institute in the future.
In addition to the detailed features in the document, mentioning its use as an alternative to money, complying with AML and counter-terrorism regulations, and issuing by the same bank, there are also more interesting features. First, the bank states that the coin will have a feature:
Adherence to all privacy and security principles and rules, in particular, by bank secrecy laws, and by the Common Law for the Protection of Personal Data (LGPD);
As a fundamental part of the currency. The CBDC has been criticized that the issuer can have full control over its users’ spending information and personal data, so the bank is already dealing with such criticism. Another important specification that the bank mentions is the relationship that its currency will have with smart contracts. The document also states that the currency will have one:
Emphasis on the development of innovative business models based on technological developments such as smart contracts, Internet of Things (IoT), and programmable money;
Which can enable future currency to be interoperable with smart money features.
The CEDB initiative is part of a program called Agenda BC #, an initiative of the bank to modernize some of its functions, including introducing fintech startups and some sandbox regulations in the banking business. However, this is only an initial design draft and the bank recognizes that this may change in the future, including or not including some of the characteristics of this list after Brazilian society has established more open dialogue with private sectors. is.
CBDC study at LATAM is not so common
The Central Bank of Brazil has been a leader in proposing and issuing guidelines for its CBDC across the continent. Most countries in the region have not announced any interest in examining such currency to deploy such currency in their territories.
In contrast, the Bahamas, an island country, is on the verge of The launch Sand Dollar, its own CBDC. In addition, China is already using its own CBDC for cryptocurrency payments, Executed 3 million operations worth more than one billion yuan during the previous year.
What do you think about the advances being made by the Centra Bank of Brazil on the CBDC? Tell us in the comment section below.
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