Digital Real pilot project starts in March, says Central Bank president

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Campos Neto also stated that a new regulation for the digital currency will not be necessary, as the regulation of deposits will be used. President of the Central Bank, Roberto Campos Neto. Alan Santos/PR The pilot project for the digital real, the country’s future official virtual currency, will start in March, said this Monday (27) the president of the Central Bank, Roberto Campos Neto. The idea, according to him, is that the currency can be working for the public by the end of 2024. “In terms of next steps, next month, we will have the pilot working, so next month we will already there will be a digital currency pilot, Brazil will be one of the first countries in the world to do this”, said Campos Neto during an event at a university in Brasília. “As we have security, the idea is to have something working at the most by the end of 2024”, he added. The project is being developed by the Central Bank in partnership with several institutions. The BC president explained that the digital currency will be an extension of the money used by people today. “Basically, taking a deposit, blocking it and issuing a token on top of that deposit”, he summarized. Among the advantages of the digital real compared to the physical currency are the lower intermediation cost, greater efficiency, greater digital inclusion and the possibility of monetization, said Campos Neto. Still according to Campos Neto, it will not be necessary to make a new regulation to launch the digital currency in the country. “If it is a tokenized deposit, it inherits the entire regulation of the deposit. That means a lot, imagine making a whole new regulation.” What will be the digital real According to the Central Bank, the digital real: will be issued by the BC, as an extension of the physical currency, with distribution to the public intermediated by banks and payment institutions; custody will be at the Central Bank; it can be exchanged for the traditional real (in notes), and vice versa; quotation against other currencies will also be the same; banks will not be allowed to lend these resources to third parties, as is currently the case with the physical real, and then return them to customers; there will be no remuneration, that is, the resources will not have an automatic correction; there will be a guarantee of legal, cybernetic and privacy security in operations. VIDEOS: economic news

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