The President of the Central Bank of Brazil (BCB), Roberto Campos Neto said this Tuesday (13) that cryptocurrencies are efficient in digitizing and giving easy liquidity to assets in digital format, a path of no return in the world economy. Campos Neto opened the “Seminar Security and data protection in the digital world”, organized by Poder360, with support from PicPay. During his participation, the president declared that the BCB seeks to improve the national financial system. Even so, he said that the search for improvements is not a linear path, and may come and go during the process.
BCB president commented on the efficiency of cryptocurrencies: “a path of no return”
During the analysis of the digital world, Roberto Campos Neto said that the debate should not be restricted to the use of cryptocurrencies, since the subject is deeper than that. According to him, people use digitization to extract asset values. So the quest for a digital representation that has value is the real quest. By putting “encryption” around it, negotiations on digital platforms were boosted in the cryptocurrency market, a process that Campos Neto says has no turning back.
“People are trying to find something that has a digital representation, that has value, they put encryption around it and then they trade on a digital platform. That trading allows for speed, divisibility, security and transparency. That’s a process that I think there’s no turning back. Regardless of the jumps and volatilities we’ve seen recently in crypto assets, I think there’s no turning back from this technology. For one simple reason: it’s much more efficient to do it that way.”
With all the debate about the migration from an economy of accounts to one of tokens, Campos Neto declared that the Central Bank of Brazil already understands that all the operational costs of a bank can be reduced.
We are looking at tokenization of art
Among BCB studies, the art tokenization sector, or NFTs, and metaverse innovations also undergo analysis. But Campos Neto understands that all innovation in blockchain technology must go through regulation and have a global format. In the future, with the arrival of the digital Real scheduled for 2024 in Brazil, Campos Neto believes that the country will have a cheap, safe and transparent digital representation. The possibilities of connecting the CBDC to a metaverse, for example, is one of the BCB’s studies. That is why the process of modernizing the national currency, with a digital asset of universal access, is important. For the future, Campos Neto believes that Brazilian banks should carry out the custody of cryptocurrencies and CBDCs, with regulated operations. The scenario will then be to bring the autarchy closer to DeFi, which the BCB president believes is better to include people in the financial sector.
“Central Bank will regulate cryptocurrencies with CVM”
On the regulation of cryptocurrencies in Brazil, Campos Neto stated that Brazil’s approach differs from many countries. In addition, the rules will be defined jointly by the BCB and the Securities Commission, municipalities that talk about the subject frequently. The idea, according to the BCB president, is to interconnect cryptocurrencies to the national financial system, mainly with CBDC, PIX and Open Finance.
In the future, Roberto Campos Neto hopes that, using just one application, Brazilians will be able to see their balance in their various banks, cryptocurrencies deposited in digital wallets, and tokens held by investors, thus integrating the entire national financial system.
