Brazil Central Bank is planning to launch a CBDC in 2024.
According to the president of the central bank, digital assets could drive participation.
Brazil will join the likes of China, the Bahamas, and Nigeria as nations with individual CBDCs.
Neto also revealed that the bank is planning to conduct a pilot program alongside other financial institutions prior to the full implementation of the CBDC. He also went on to give the benefits of implanting a digital currency issued by the central bank notably driving participation.
“I think that this digitized, paid-in, integrated system, with inclusion, will help a lot in the development and inclusion of people in the financial world.”
He also added:
“Greater inclusion, lower cost, intermediation, competition with reduced barriers to entry, efficiency in risk control, monetization of data, complete tokenization of financial assets and contracts. This is what we see in this digital economy in Brazil.”
It will be noted that today’s development comes about eight months after Brazil announced plans to develop digital currency.
If successful, Brazil will join the likes of China, Nigeria, India and other countries that have already launched their CBDC including plans to launch in the future. In general, there are many countries that are currently researching similar plans for launching CBDCs.