First prototype of Digital Real to be created this week, reveals Brazilian central bank Lab member
The first prototypes of the Real Digital are scheduled to be released next Thursday, October 20. Ronaldo Lemos, a lawyer, specializing in new technologies and director of the Institute of Technology and Society in Rio de Janeiro, stated in his weekly column in Folha de S. Paulo.
This information was entrusted to him by an unidentified member of one of the nine projects selected by the Laboratory of Financial and Technological Innovations (Lift) to develop solutions for the Brazilian Central Bank Currency (CBDC) during an event in Italy where practical applications of blockchain technology and cryptocurrencies were presented for the benefit of society.
Lemos pointed out that while the Digital Real is still in an experimental phase, this is an “important moment” because, in practice, it means that “Brazil gives the green light to its own currency in digital format, strictly supervised by the Central Bank.”
The lawyer added that he hoped the potential benefits of a Brazilian CBDC could reach different sectors of society and not be limited exclusively to financial players:
“It would be exciting if this model of experimentation and innovation promotion could be found in different economic sectors of the country and not only in the financial sector.”
CBDC
Central bank digital currencies (CBDCs) are digital tokens, similar to cryptocurrency, issued by a central bank. They are pegged to the value of that country’s fiat currency.
However, CBDCs should in no way be confused with cryptocurrencies such as Bitcoin. While cryptocurrencies are created decentrally and are not ‘issued’ by anyone, they guarantee freedom for the people as governments and central banks cannot control them.
CBDCs are also digital currencies but issued by a central bank and that is precisely why they are de facto the opposite of cryptocurrencies. They are an instrument of freedom restriction and can be misused by malicious governments as a totalitarian means of control (see video below).
Many countries are developing CBDCs, and some have even implemented them (e.g., China). Because so many countries are researching ways to transition to digital currencies, it’s essential to understand what they are and what they mean to society.
Also Brazil confirms it will launch a pilot test of the Digital Real this year. With this development, Brazil will become the first South American country to launch a pilot of a sovereign digital currency.
More: Brazil news in English, every day from The Rio Times.
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Brazil — Live Market Board
+0.21%
174,951.12
+0.21%
66,644.91
+0.53%
11,369.64
-0.71%
3,019,891
+0.36%
2,493.32
-0.60%
60,449.35
+0.24%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 174,951.12 | +0.21% | +21.85% | 174,576.80 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
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