Like China, Brazil is moving forward with a digital currency project. Called the digital real, the project will be classified as a stable price currency controlled by the Central Bank, also known as CBDC.
According to the Central Bank, the digital real is preparing for a stablecoin testing phase. The news was announced by the president of the Central Bank, Roberto Campos Neto.
As such, the testing phase of the currency could take place in the second half of 2022. In this test phase, the Reserve Transfer System (STR) will handle transactions with the digital real.
Central Bank to test digital real
The testing phase of the digital real is approaching, and Roberto Campos Neto recently announced the stablecoin during a live stream. According to the Central Bank president, a Digital STR system will be created, focused on the currency created by the agency.
“So we should have a parallel system on top of the existing one, a digital STR, which will be secured by the digital currency, the Digital Real”.
In other words, each bank will be able to issue stablecoins according to its financial transactions of cash deposits. When talking about the advancement of the digital real, Campos Neto says that there are no other projects like the Brazilian digital currency.
In addition to Brazil, China is moving forward with the digital yuan, the CBDC of the Asian country. Unlike the digital real, which will be tested as early as the second half of 2022, the digital yuan has already been used by 140 million people.