The Central Bank of Brazil (BCB) established general guidelines for the development of a Brazilian Central Bank Digital Currency (CBDC), which may be implemented in order to keep up with the digital transformation of the global economy and foster innovation in Brazil.
The Central Bank of Brazil (BCB), through a press release, provided general guidelines for the development of a Brazilian Central Bank Digital Currency (CBDC), seeking to foster innovation in the Brazilian Payments System, while matching the digital transformation of the global economy. The guidelines result from a working group established by BCB in August 2020, through Ordinance n. 108.092/2020.
According to that BCB press release, the possible development of a CBDC is intended to keep up with the technological evolution of the Brazilian economy, enhance the efficiency of the retail payment system and cross-border transactions, and foster new business models and other innovations, while guaranteeing economic stability.
The press release provided 10 preliminary guidelines for a Brazilian CBDC, which include the adherence to the Brazilian General Data Protection Law (Law n. 13.709/2018) and the Bank Secrecy Law (Complementary Law n. 105/2001), and the technological design and adoption of standards for tracking illicit operations and preventing cybercrimes.
The press release also clarifies that the listed guidelines correspond to BCB’s current understanding of the subject, while further discussions and public consultations will be required.
