Brazil's Central Bank Puts CBDC Debut On Hold 2 Years

Brazil’s Central Bank Puts CBDC Debut On Hold 2 Years

June 14, 2021 at 03:00AM

The Banco Central de Brasil (BCB) wants at least a year of more time before it debuts its new central bank digital currency (CBDC), CoinDesk writes.

“According to the current BCB assessment, the conditions for the adoption of a Brazilian CBDC will be achieved in two to three years,” the bank said, according to CoinDesk.

According to BCB, the time frame for the rollout depends on the evolution of the projects the bank is working on now.

This comes after BCB said there would be a CBDC ready by next year.

There are other fresh elements of the bank, including a new instant payment system called PIX, along with the coming launch of its open banking model; the bank says it is depending on those things being a success before rolling out a CBDC.

The BCB was still optimistic about the prospects of a digital currency, saying it “may provide new tools to foster innovation and competition in an increasingly digital economy; reduce the use of cash and therefore its maintenance cost; improve cross-border payment processes; curb illegal activities and improve financial inclusion.”

The bank also expects the new coin to coexist with the existing physical currency.

In addition, the BCB has been participating in the global talks about standards for CBDCs. The next step, it said, is to look into the impact on the Brazilian economy.

Last year, PYMNTS wrote of BCB’s intent to launch a coin by 2022. That came as central banks around the world were racing for earlier rollouts of the CBDCs, and PYMNTS wrote that the central banks who rolled them out earlier could end up being encouraging and instructive to others.

Roberto Campos Neto, president of Brazil’s central bank, said the CBDC would work together with BCB’s instant payment system, as a CBDC needs “an instant payment system that is efficient and interoperable; an open system where you can create competition; and a currency that has credibility, is convertible and international,” he said.