Brazil is all set to take its crypto and blockchain relationship to another level.

According to the president, Banco Central, Roberto Campos Neto, the country’s central bank, Brazil’s Central Bank Digital Currency (CBDC) could be ready for use before 2023.

This is regardless of the fact that Brazil just began formally studying the possibility of implementing a CBDC. Brazil’s Central Bank only last month inaugurated a study team to evaluate the idea. The team, however, in 6-12 months should be ready with their report, the president explained.

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Why switch to a digital banking system?

According to Neto, Brazil is working towards modernizing the country’s financial system. This has made CBDC a natural outcome.

The country also has been working towards developing a technology capable of processing interbank payments without a time limit, practically free and instantaneously.

Neto also talked about PIX instant payment system and open banking among these measures.

In theory, PIX would aid the digital evolution of Brazil’s money.

Neto said in his own words “To have a digital currency, you need 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. This payment system could be the renowned PIX that is about to be launched. ”

“After that, I think you’ve got all the ingredients to have digital currency. We think we’ll have it by 2022, he said further.

Plans are also underway to ensure peer to peer and business to business transactions in seconds. This is through a mobile phone, internet banking, or Automated Teller Machines.

Other countries set to launch a CBDC

Outside Brazil, many other countries have also begun looking at the prospect of launching a CBDC.

China, for example, leads the race of this development. The Asian country has already begun testing its digital Yuan in many provinces in the country.

Apart from China, countries like Canada, Sweden, Russia the Bahamas also are working towards developing a CBDC.

England, Estonia, the United States, however, are debating whether or not a CBDC should be developed.