Roberto Campos Neto, President of the Central Bank of Brazil (BCB), has called for constructive crypto regulations that consider investors’ need for digital assets. A report unveiled this news on August 19, citing Neto’s speech during a Council of Americas-organized event. Neto said better regulations are necessary, seeing as people need payments that are fast, open, and transparent.
According to the report, Neto pointed out that policymakers are worried that the crypto market has shown more growth as an investment tool than a payment system. While he believes it is important to keep an eye on this development, Neto claims that the financial market is changing into data rapidly. As such, it is vital to amend the regulations that govern it.
Reportedly, Neto’s call for better regulations is part of his tech-savvy approach to improving the Brazilian financial industry. After taking on the role of BCB’s president in 2019, the 52-year-old, who formerly held an executive position at Banco Santander, started pushing for the development of the digital version of the Brazilian real, among other related initiatives.
His efforts saw BCB launch an instant payment platform dubbed PIX in the past year. At the moment, the platform has managed to onboard 96 million users out of 213 million Brazilian citizens. Allegedly, PIX recorded as many as 40 million transactions in one day early this month, underscoring the increasing demand for fast payments in the country.
Brazil’s journey towards issuing a CBDC lengthens
Hoping to address the financial challenges in the country, BCB created a working group to study the issuance of a central bank digital currency (CBDC). A year ago, Neto announced that Brazil would be ready for a CBDC by 2022. At the time, he said the central bank would have created an interoperable payment system and a credible, convertible international currency, setting the foundation for a CBDC in 2022.
While BCB has PIX up-and-running, it has not yet launched its open banking system. To this end, the bank has pushed the CBDC launch forward by two to three years. Nonetheless, BCB is bullish on the benefits that a CBDC could introduce to the Brazilian financial space.
According to BCB, its CBDC might offer new tools to encourage innovation and competition in a digital economy. The authority also believes that a CBDC can help it cut maintenance costs by minimizing the amount of cash in the economy. Additionally, BCB is positive that a digital real can improve cross-border payments, boost financial inclusion, and combat illicit financial activities.
The post BCB President calls for better crypto regulations as investor interest surges appeared first on Invezz.