Brazil’s Government About to Launch its Own Digital Currency

A launch date has already been set for Brazil’s Central Bank’s digital currency. According to the monetary authority, the first trials are scheduled to start in 2023, and the initiative named “Real Digital” might be introduced as early as the second half of 2024.

The project was delayed by a strike earlier this year, but Fabio Araujo, an economist with the Central Bank, announced the timeline at an event on Monday.

Araújo said that while trials will be underway in 2023 and most of 2024, the Brazilian Bank won’t be sure if it will be feasible to launch it in the second half of 2024 until after those tests are complete.

Brazil’s Central Bank has recently implemented the use of digital payments for its citizens. Known as “Pix”, this feature allows Brazilians to transfer money from each other instantly, without charging any bank fees.

Mr. Araújo stated in 2021 that Pix’s implementation in Brazil had already met the people’s demand. He also stated that after that, the implementation of cryptocurrency payments had lost its purpose.

Brazil’s Crypto Market Expands

The South American country is one of the leading countries when it comes to cryptocurrency. Brazil has over 10 million cryptocurrency owners, which means that around 5% of the country’s population owns one or more cryptocurrencies.

Recently, news arrived of Brazil’s largest investment broker “BTG” announcing their very own cryptocurrency platform. Given that BTG has over 3.6 million users, experts are expecting a flood of new Brazilian investors to reach the crypto market by the end of the year.

Digital Currency Worldwide

Although Brazil’s economy may be the largest one taking into account a digital currency, the country is not alone.

Chile is also conducting investigations to see whether a digital currency issued by the central bank is feasible. The Eastern Caribbean Central Bank introduced the DCash digital currency in the Caribbean, the first CBDC ever introduced by a currency union. Not to mention El Salvador’s Bitcoin trial and error.

Brazil could be the largest economy introducing a digital economy, but it’s far from being the only one. Fellow South American Chile is also analyzing whether a digital currency issued by the central bank is a feasible project.

The Caribbean has already introduced a digital currency by the name of “DCash”, being the first Central Bank Digital Currency in the world.

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