According to Paulo Guedes, the future of paper money may have its days counted in Brazil. The Minister of Economy also talked about the creation of a single currency in Latin America, just as the euro is currently used throughout Europe.
Paulo Guedes spoke about the end of cash and the adoption of a digital currency controlled by the Central Bank, also known as CBDC, during the Brazilian American Chamber of Commerce recently in New York. The Brazilian Economic Minister explained that the digital real should replace banknotes and coins.
Thus, compared to the euro in Europe, Paulo Guedes suggested that the digital real can be adopted throughout Latin America, functioning as a single currency.
He cited that the project of a currency used among the bloc of Latin American countries should strengthen economies such as Venezuela’s and Argentina’s, for example.
With countries like Brazil and China developing their digital currencies, Paulo Guedes believes that fiat money may end. In addition, the economist cited blockchain technology during the event.
Guedes concluded that paper money would be retired with the adoption of digital currencies in up to five years. As well as cryptoassets, the Minister of Economy believes that blockchain technology will be responsible for this transformation in that of “cash”.