Brazil's central bank plans to launch digital currency in 2024 to start the road to financial innovation

News on May 26, Brazilian Central Bank Governor Roberto Camposeneto announced on Tuesday that the Brazilian Central Bank plans to launch its own digital currency in 2024 and plans to conduct a closed pilot with financial institutions next year.

The Central Bank of Brazil announced a digital currency pilot project in March this year to explore the potential and applications of digital currency. After screening, the Central Bank of Brazil announced 14 companies, financial institutions and consortia on May 24, including Brazil’s major private banks Bradesco, Nubank and Itaú Unibanco, along with Brazil's largest public bank Banco do Brasil and local stock exchange B3, were selected to participate in the digital currency test.

According to the plan of the Central Bank of Brazil, once the digital currency is launched, the Central Bank of Brazil will become its issuing institution, and the digital currency will serve as an extension of physical currency and will be distributed by various banks. Digital currencies and Brazilian reals are freely convertible into each other and are protected by law.

To ensure the smooth launch of digital currency, the Brazilian Central Bank plans to complete relevant development and testing work before February 2024, and officially launch digital currency after further evaluation and revision. The Brazilian Central Bank’s digital currency pilot program will become an important driver in promoting financial innovation and the development of digital payments in Brazil.

The Brazilian Central Bank’s digital currency plan has attracted widespread attention. Not only Brazilian financial institutions, but also multinational companies such as Visa and Microsoft have been selected to participate in digital currency testing. This further demonstrates the determination and efforts of the Brazilian Central Bank in promoting digital finance.

The launch of the Brazilian Central Bank’s digital currency will bring innovation in promoting digital payments and financial services, and will have an important impact on Brazil’s financial system. This will also inject new impetus into Brazil's economic development and the competitiveness of its financial market. The Central Bank of Brazil will maintain close cooperation with relevant institutions and enterprises to promote the successful implementation of digital currency, thereby adding more vitality to Brazil's financial system.

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