The digital real, the upcoming Brazilian CBDC, apparently has a number of functions that aren’t conventionally being considered by countries. The Bank of Brazil’s president, Roberto Campos Neto, demonstrated the idea the bank has for the final form of the currency. Campos Neto presented the concepts for the currency that the organization has under the label “open finance” on November 25 at a web event.
This concept involves combining the digital real with traditional institutions and decentralized financial organizations.
A “super app” that will enable users to store both stablecoins and the CBDC was also displayed at the event, demonstrating the system’s integration with the currently operational PIX payments network. The application will provide users with a comprehensive overview of all of their savings, whether they are traditional or crypto-based, in a single place.
Since the central bank and other institutions are still testing the various implementations and features this new coin would have, there is no expected completion date even though the digital real concept has been in development for a while. Campos Neto asserted that as the nation moves toward monetary digitization, the digital currency will serve as a bridge to decentralized finance
“The digital real part is a bridge to the DeFi environment. We are bringing the digital world to the banking system. Several other central banks are doing the opposite. They are actually pushing digital out of banking.”
Regardless of what Campos Neto claims, a number of central banks have already begun testing various digital currencies. A proposal to do away with physical money has gained momentum in Latin American countries as crypto adoption grows.
The Federal Reserve Bank of New York is likewise testing an interoperable network of central bank wholesale virtual currency. The adoption of a digital euro is now being studied by the European Union, and regulations are expected to be issued soon.