The President of the Banco Central do Brasil (BCB) also known as the Central Bank of Brazil has stated that it is important to have robust cryptocurrency regulatory policies in place, to address the increased interest in the nascent technology.
Cryptocurrency to Exist With Brazil’s Instant Payment System
According to Bloomberg, Roberto Campos Neto made the statement at the meeting of the Council of the Council of the Americas on Thursday (August 19, 2021). Campos Neto stated that lawmakers in the country were concerned that more Brazilians used cryptocurrency as an investment tool, rather than a means for payment.
In response to such concerns, the BCB president said:
“We need to pay attention to that. The financial market is changing so much that it’s all becoming data. We need to reshape the world of regulation.”
Campos Neto also said that the growing adoption of cryptocurrency in Brazil was mostly due to the need for a viable option that is open, secure, and comes with robust transparency. Furthermore, the Brazilian central bank head noted that the interest in the nascent industry meant that crypto was going to have a lasting presence in the Latin American country.
Meanwhile, the BCB rolled out its instant payment system called Pix in November 2020. One of the main reasons for launching Pix was to ensure adequate financial inclusion, bringing the unbanked into the financial system.
The instant payment system conducts transactions without intermediaries and is available round the clock and 365 days of the year. In a population of over 200 million, more than 96 million Brazilians utilize Pix. Earlier in August, the system recorded 40 million transactions within 24 hours.
With Pix already in existence Campos Neto said that he is working with the country’s Securities and Exchange Commission to establish a framework that would enable cryptocurrency to coexist with the BCB’s instant payment system.
Apart from working towards setting up crypto regulations, Brazil is also among the list of countries developing a central bank digital currency (CBDC). Back in September 2020, the BCB said that it was planning to release its digital real by 2022.
Also, Brazil became the first country in Latin America to approve a Bitcoin and Ethereum exchange-traded fund (ETF).
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