Central Bank Digital Currencies (CBDCs) are becoming very popular recently. Most countries are working on their own version of it. Some have already tested and launched their digital currency, while the rest plan to do a pilot run in 2022 or 2023. Brazil is also one of those nations. Roberto Campos Neto, the president of Brazil’s Central Bank, said that they would do a pilot test of their CBDC in 2022.
Brazil’s Central bank Digital Currency
Roberto Campos said that they would have a fixed supply of their CBDC, and the pilot test would be done in the 2nd half of the year. He was recently asked about the details of the project at an event. There he said that it is a “way to create currency digitization without creating a break in bank balance sheets.” He also said that the Central Bank Digital Currency would be linked with the reserve transference system, which is a fiat-based payment system.
Roberto also gave his views on cryptocurrency as a payment medium. He said that most people still view it as an investment rather than a payment method. But with more adoption globally, it will change.
The problem with a Central Bank Digital Currencies
If CBDCs replace the fiat system of currency, it will be a big problem for the masses. First of all, it will give the government control over their transactions, and people will be tracked all the time. Privacy and data safety goes down the drain with CBDCs, which was rightly pointed out by many authorities in the US. Nations will say it is an alternative to Bitcoin, but it is not. It is just another way to control the masses and not give up control.
There are many decentralized cryptocurrencies like Bitcoin and Ethereum, which will help the masses be in control. It’s time to push for the adoption of these cryptocurrencies. I don’t see a difference between using the dollar or a digitalized version of it called a CBDC. Only if we are able to make Bitcoin a globally accepted currency the long government domination over the people will stop.
What are your thoughts as Brazil’s central bank reports that it will do a pilot test of CBDC in 2022? And do you think CBDCs are just as trash as fiat currencies? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.