Brazilian central bank confirms CBDC pilot will launch in 2022

Tuesday 19 April 2022 12:26 CET | News

The Central Bank of Brazil has confirmed that the country’s sovereign digital currency pilot will go live this year, Cointelegraph Brazil reported.

The value of the upcoming CBDC would be pegged against the national fiat payment system STR (Reserve Transfer System). Central bank officials also confirmed that ‘Digital Real’ would have a fixed supply and only a certain amount of it would be minted, quite similar to Bitcoin, as explained by Cointelegraph.

The confirmation of a CBDC pilot by the second half of the year comes after a month of the central bank's partnership with nine banks to assist with its CBDC development. With confirmation from the central bank president, Brazil would be joining the growing list of countries working on their sovereign digital currency.

Brazil is currently looking to cash in on the cryptocurrency frenzy and digitization. Apart from its focus on CBDC development, Brazil also introduced a crypto bill in late February to regulate the crypto market. The bill defines various aspects of what constitutes a virtual asset (VA), a broker or exchange, and which arms of the federal government would have jurisdiction over the matter.

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Keywords: CBDC, cryptocurrency, regulation, Bitcoin
Categories: DeFi & Crypto & Web3
Companies: Central Bank of Brazil
Countries: Brazil
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DeFi & Crypto & Web3

Central Bank of Brazil

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