Central Bank of Brazil hints at creating digital currency

Contxto – Roberto Campos Neto, the President of Brazil’s Central Bank, hinted at an up-and-coming secret project during the inauguration of the Foro PIX event held on August 20.

The head honcho stated that PIX—a major government payments system that’s slated for release next November—could lead into the launch of a digital coin.

The Central Bank of Brazil and perfecting PIX

Apparently, this digital token-coin-thing could help the overall PIX system.

“In our case, PIX is very important because from here on out, we’ll see the merging of instant payments that’s open and cannot be tampered with thanks to its open data system. And at some point in the future it will stand alongside a coin that needs to be perfected,” noted the Central Bank’s President.

“We have a project that will simplify exchanges and that will be coupled with a convertible coin,” said Campos Neto.

PIX in and of itself promises speed in electronic transactions. And the use of a digital coin to facilitate operations could help kick cash to the curb.

Although Campos Neto didn’t dive into details, it’s been suggested he’s a blockchain fan. Moreover, this “secret project” may be linked to the private meeting he had with Ripple’s CEO in May.

Are governments cringing at cryptocurrencines?

Officials in Latin America are very fickle when it comes to digital assets. In Argentina for example, the government published guidelines for the use of cryptos earlier this month. Then took it down just one day after posting.

In Colombia, the legislative branch was set to talk about crypto-regulation last June. But never actually got around to it and the project was put on the backburner.

The somewhat closest thing is in Mexico. Through the country’s Fintech Law, “digital assets” is a term that often pops up. Likewise, under Mexican regulations, crypto-exchanges are required to file reports on their operations as well as comply with anti-money laundering policies.

One step forward two steps back

This entire situation kind of feels like when you go to a party and the music is weird. 

Many want to dance, but nobody knows how to move to the beat of Bitcoin or Dash. Cryptos, digital tokens (like the Brazilian Central Bank’s digital coin), and overall tech are constantly evolving. 

Needless to say, governments in Latam aren’t famous for being quick-footed.

So instead, authorities are standing there awkwardly, tapping their foot to the music and hoping someone else takes the lead and sets a replicable example. That, or whoever hits the floor makes a fool of themself to the smug satisfaction of skeptics (like Bolivia) and onlookers (Chile, Colombia, Peru).

At the moment, it appears that Brazil and Mexico are at the center swaying to the melody. For the sake of crypto-enthusiasts, one can only hope they aren’t left-footed.

Related articles: Tech and startups from Brazil!

-ML