“We have no intention of using Bitcoin in Brazil” says Director of the Central Bank

The Central Bank of Brazil, BC, has ruled out any possibility of following in the footsteps of El Salvador or nations like Argentina and adopting Bitcoin (BTC) as legal tender or as a financial alternative in the country.

“Bitcoin we see as a speculative asset. An asset of high volatility. So we have no intention in Brazil of making Bitcoin-denominated contracts. We also have no intention of prohibiting people from using Bitcoin,” said Fabio Araujo, economist and responsible for the Real Digital project within BC.

Araujo granted the statement during a live organized by the IG portal, in which he also spoke about BC’s plans in relation to Real Digital, CBDC that Brazil intends to start tests in 2022.

As revealed by the economist, the BC’s intention is not for Real Digital to eliminate physical money, but that with its launch and adoption, in line with other BC digital payment instruments, such as Pix and Open Banking, the use of physical money will become obsolete, just as it happened with checks.

“We want a system in which people use the two currencies in the same way. BC’s intention is not for the Digital Real to replace the physical currency. BC believes it is important to give people options. Our intention is that it is. increasingly easier, more plural for people to do actions in the digital world so that the physical Real is no longer necessary for people. As practically the check is no longer needed today,” he said.

no one wants privacy

Araujo also highlighted that ensuring privacy through decentralized systems is a conversation much more connected to people who are connected to the cryptocurrency ecosystem, however, the common citizen has no problem with the guarantee of privacy by a centralized entity.

“People today who are used to using tools from the crypto environment, most of them, most of them not, but a good part of them, think that privacy is a very important thing and that information being separated from any centralized system is a very important thing. But that’s not the view of most people,” he said.

Therefore, he does not believe that the fact that BC is the issuer and guarantor of Real Digital is a problem, on the contrary, according to him, people trust the Central Bank and the adoption of CBDC do Brasil will be gradual and whose pillars are being built by Pix and Open Banking.

“Most people have no problem having their data in a centralized database as long as they trust the institution that is keeping that data, as today our data is in banks, central banks and governments and we wait maintain that same level of privacy that is available to the citizen with the new digital currency,” he said.

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