According to statements from the president of the Central Bank of Brazil, Roberto Campos Neto, the Brazilian central bank digital currency (CBDC), the digital real, will be more of a wholesale asset rather than a public retail-focused token. Campos Neto also indicated that private banks in the country would be allowed to issue their own stablecoins. They will be collateralized with digital real deposits.
Digital Real Won't Be Retail Oriented
Brazil is soon issuing a CBDC that won't be
like other CBDCs, such as the digital renminbi. According to Roberto Campos
Neto, president of the Central Bank of Brazil, it will only have a wholesale
purpose and no retail purposes at all. He shared this information at a crypto
summit hosted in Rio.
Talking about the projected uses of the digital
real, Campos Neto stated, "Banks will be able to issue stablecoins on
their deposits and will develop a technology for that, they will have to invest
because they can make gains. And once they have that developed, the protocols
for issuing stablecoins on deposits will basically be the same thing as for
monetizing various other digital assets."
Campos Neto also stressed digital real would
have a very unique focus. It will have the goal of monetizing assets without
harming the credit functions of private banks and will be using them as
collateral.
Tokenization and CBDC Disarray
Campos Neto included tokenization as one of
the possible processes where a CBDC can help with improvements. Regarding
mortgages, Campos Neto said implementing a tokenization model could make paying
or getting a reverse mortgage simpler, reducing fees and waiting times. It can
also help simplify the paperwork.
Campos Neto also criticized the disorder
and lack of coordination that central banks have experienced in the process of
designing their respective CBDCs. He stated, "When I meet with other
central banks, I see that one is trying to develop a decentralized system, and
another talks about automating a multi-tiered payment system… If you have
development in this uncoordinated way, it will never be better than a crypto
platform that is centralized."
NFTs Can Help Save the Amazon
Believe it or not, NFTs might play a key
role in saving the Amazon
rainforest. In March this year, a Brazilian company Nemus started the
process of selling NFTs as a new way to finance the conservation of the Amazon
rainforest. It owns 410 square kilometers of the rainforest. On the first day
of the process, Nemus successfully sold 10% of an initial offering of tokens
for 8,000 hectares.
The proceeds from that sale have been kept
aside to be used for tree preservation, promoting sustainable development, and regenerating
the areas that are already cut.
The buyers of NFTs can sponsor the preservation
of specific areas and tracts of the forest without needing to own them. They
will also get a piece of artwork of an Amazonian plant or animal which is created
by Concept Art House.
Sources:
https://news.bitcoin.com/digital-real-will-be-used-by-banks-in-brazil-as-collateral-to-issue-their-own-stablecoins/
https://en.cryptonomist.ch/2022/06/08/brazil-digital-real-stablecoins/
https://newstral.com/en/article/en/1221676961/digital-real-will-be-used-by-banks-in-brazil-as-collateral-to-issue-their-own-stablecoins