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Brazil plans to pilot CBDC in the 2nd half of this year

Brazil will likely start piloting a CBDC in the second half of 2022, according to a statement from the country’s central bank president.

Roberto Campos Neto, president of the Central Bank of Brazil, commented on Brazil’s plans for a central bank digital currency during an event presented by TradersClub (TC) and Arko Consult on April 11.

There, Neto suggested that a pilot for the country’s CBDC is expected to take place in the second half of 2022.

He said the bank has been studying the process leading up to a CBDC for a long time, but the upcoming phases of the project will increase the bank’s “knowledge” exponentially.

Neto said that the project would digitize the Brazilian real “without creating a disruption in the balance sheets of the banks”. He added that the digital currency will be backed by the Brazilian real and banks will be able to issue stablecoins in lieu of deposits.

It remains unclear whether the pilot will provide assets to members of the public or limit assets to the bank itself.

Neto also commented on the growing popularity of cryptocurrencies, also believing that “there is no central bank in the world today that is not involved in this digital currency research process.”

While today’s news suggests that the Brazilian CBDC will be tested before the end of the year, previous reports suggest that the content will be incomplete and ready for use until 2024 at the earliest.

In addition to the main pilot, Brazil has also selected nine proposals from partner projects to support its CBDC efforts.

Developing a CBDC is not the only pursuit associated with Brazilian crypto. The South American city of Rio De Janeiro has plans to allow residents to pay property taxes with Bitcoin starting in 2023, as reported last month. The city also plans to invest directly in cryptocurrencies based on previous reports.

Brazil is also being noticed by foreign companies. Last month, it was reported that Coinbase and Binance were exploring the possibility of acquiring various Brazilian crypto companies.