The Central Bank of Brazil is seeking support from both domestic and international technology giants for its CBDC project. Notably, the country’s regulatory framework permits crypto investment and trading, and the central bank does not oversee or regulate cryptocurrency transactions. Instead, it is concentrating on blockchain technology and intends to introduce an advanced version of its sovereign fiat currency in digital form, known as the Brazilian CBDC.
Microsoft, a prominent technology company, and Visa, a card payment processing firm, have recently become participants in Brazil’s CBDC pilot initiative.
In addition to the support of Microsoft and Visa, the Central Bank of Brazil is receiving assistance from 12 other participants, which includes a local bank in Brazil and 7COMm.
The Federal Reserve (Fed) in the United States has suggested the development of a US CBDC, commonly known as the Digital Dollar, to maintain its position as a leader in digital financial innovations.
The Governor of Florida recently expressed opposition to the concept of the digital dollar, stating that it would strip people of their monetary power. In lieu of this, the Governor proposed an alternative approach to distributing control over the flow of digital dollar funds. Currently, approximately 100 central banks are actively competing in the development of CBDCs, with around seven banks in the pilot phase.
The Bahamas was the first country in the world to introduce its CBDC, called Sand Dollar. Subsequently, China and Nigeria demonstrated their rapid efforts to launch their own CBDCs. Notably, the Nigerian CBDC, e-Naira, did not gain significant adoption in its first year. However, during a currency demonetization phase, e-Naira experienced a sudden surge in adoption.
