Brazil Aiming to Launch CBDC by 2022

Brazil has now entered the race of developing a central bank digital currency (CBDC) as its monetary regulator is aiming to develop one by 2022, the president of the Central Bank of Brazil, Roberto Campos Neto revealed.

This came weeks after the central bank established a group to study the prospects of launching a CBDC.

Neto highlighted the role of PIX, the upcoming banking infrastructure in the country for instant payments, in the development of the digital currency. Brazil is already working on the Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term infrastructure and is aiming to launch it by November.

The Brazilian central bank is also launching an Open Baking initiative later this year.

“To have a digital currency, you need an instant payment system that is efficient and interoperable; an open system, where you can create competition; and a currency that has credibility, is convertible and international. This payment system could be the renowned PIX that is about to be launched,” Neto said at a Bloomberg event on Wednesday, covered by local media Correio Brazilienese.

PIX can be seen as a competition to Ripple Ripple Ripple was co-founded by Jed McCaleb and Chris Larsen and was debuted in 2012 as both a digital disbursement network and a pre-mined digital coin denoted as XRP. Possessing less market cap than both Bitcoin and Ethereum, Ripple ranks as the third-largest cryptocurrency.Its dual open-source and peer-to-peer (P2P) decentralized platform whose network is capable of working with any form of money such as GBP, Ethereum, Yen, etc. What is Ripple Used For? Known as a gateway, participants of Ripple may Ripple was co-founded by Jed McCaleb and Chris Larsen and was debuted in 2012 as both a digital disbursement network and a pre-mined digital coin denoted as XRP. Possessing less market cap than both Bitcoin and Ethereum, Ripple ranks as the third-largest cryptocurrency.Its dual open-source and peer-to-peer (P2P) decentralized platform whose network is capable of working with any form of money such as GBP, Ethereum, Yen, etc. What is Ripple Used For? Known as a gateway, participants of Ripple may Read this Term’s ODL platform, and the involvement of the central bank in its development will also give it an edge over the US-based private player. Notably, Ripple is aggressively trying to capture the Brazilian market with local bank partnerships.

Race of Central Banks?

While the Brazilian central bank is taking positive steps towards the development of a digital currency, it is still far behind some of the other global counterparts. China is leading the arena and recently expanded its CBDC pitot program to major regions including Beijing and the Greater Bay Area.

One of the Chinese banks recently soft-launched the wallet for digital yuan for its customers but disabled the feature quickly without any explanation.