Zilda Mendes, specialist in international trade, said that the launch of the trial phase of Real Digital, CBDC do Brasil, marks a very important moment for all of Latin America.
According to her, Brazil’s CBDC marks the continent’s entry into the digital economy, but it also brings several risks to the population.
“This could result in a loss of reserves, as individuals and companies could withdraw their money from banks and switch to CBDCs. In addition to the risks to privacy and individual liberties, digital accounts with central banks would give these bodies great power, which is in no one’s interest”.
According to Zilda, the Central Bank of Brazil will not launch a CBDC in the original format and users will not have a digital account with this bank, which means that practically nothing will change, except for the use of a tool from the same system that is being called the “real digital“.
The bank reserves that already exist and that serve only the banks will be the “royal digital wholesaler“. He “real digital retailer“, also know as “real tokenized“, it will allow people and companies to continue to have the same relationships with their banks and their deposits in banks to be tokenized.
Zilda further explained that the idea of Real Digital is to allow all transactions to occur simultaneously on a single infrastructure.
Instead of a demand deposit being registered in a specific banking platform, it would be registered in a public database allowed by the Central Bank, to which all participants would have access at the same time. As he says, practically nothing will change, except the use of a tool in the same system called “real digitals”.
Zilda also mentioned that on March 6, the Central Bank of Brazil held a press conference in which the general guidelines for the launch, in the test phase, of the CBDC.
Among them is the new technology that should decentralize the supply of products and services, enabling the entry of new markets and the integration with systems of other jurisdictions to make payments with other countries. In addition, the Central Bank of Brazil would also be adopting standards of “cyber security and resilience“.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
It may interest you:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.