Tuesday, January 18

Consultant to the Federal Senate clarifies doubts about digital Real


An economic consultant from the Federal Senate clarified the population’s doubts about the digital Real in recent days.

This matter was debated in the Federal Senate at a recent public hearing, promoted by the Senate Science and Technology Committee.

On that occasion, many people sent questions to the Senate, which ended up not being answered by the audience. Thus, economics consultant Marcos Kohler answered the population’s doubts in a conversation with journalist Adriano Faria, on the program Senate Connection.

Senate Consultant clarified doubts about the digital Real

The digital Real should be the official CBDC in Brazil, already being studied by the Central Bank of Brazil since 2020. In 2021, the digital currency guidelines were published by the autarchy, making clear some theoretical points of view of this innovation.

However, one of the questions asked at the public hearing that was not answered asked about the privacy of this Bacen system. Another question was about the General Data Protection Law, issues answered by Marcos Kohler.

He remembered that the central bank digital currency, unlike Bitcoin and decentralized cryptocurrencies, will be a centralized currency. It can use blockchain or not in this process.

However, issues such as privacy and security, according to the consultant, will be related to the irreversibility of transactions, but privacy is still a new issue for central banks. Kohler reminded that this mechanism can be achieved with the combination of private and public keys, something that will have to be studied.

“So it’s possible to do it that way and preserve privacy. But we also have to think about the following: digital currency cannot become a place to create opportunities for crime, money laundering, those kinds of things. So, possibly, a legal challenge that will be the authorities’ ways of accessing to oversee the sector and prevent crimes.”

What would be the impact of a digital currency like this?

Brazil is one of the countries with a high rate of unbanked people, who are people who are not in the financial system yet. One of the questions addressed to the consultant then was about this, with the population trying to understand what the impact will be for these people.

According to Marcos, PIX was once a great help tool and today it is very easy for people to enter the banking system. Even so, he believes that digital Real currency will greatly help people in their transactions, and can help with banking inclusion.

Another point that Marcos explained is that banks will also have to reinvent this CBDC currency, as it is a new technology, despite the fact that the BCB is still in charge.

the consultant remembered that banks are the same since they were invented, but this technology presents changes and they will have to deal with the challenges of this currency, with the expectation of arriving in Brazil by 2024.





livecoins.com.br

Leave a Reply

Your email address will not be published. Required fields are marked *