The Central Bank of Brazil has postponed the launch of the state cryptocurrency by two to three years. Earlier, the Central Bank announced that it would release digital real next year.
According to a statement from the Bank of Brazil, the regulator will need more time to release the state cryptocurrency. The timing of the release of digital real depends on the development of the current projects of the Central Bank and the steps of other countries in this area.
“According to the current assessment of the Central Bank of Brazil, the conditions for the issuance of the state cryptocurrency will be achieved in two to three years,” the Central Bank said.
The comments contrast with previous statements made by the country’s Central Bank President Roberto Campos Neto, who said the country might be ready to go digital next year. The Central Bank of Brazil began exploring the possibility of issuing a state cryptocurrency last summer, and in April of this year announced that it had made significant progress in development.
“The launch of the Brazilian state cryptocurrency could provide new tools to stimulate innovation and competition in the digital economy, reduce the use of cash and, therefore, the cost of maintaining it, improve cross-border payment processes, curb illegal activities and improve access to financial services,” the Central Bank said. Brazil.
The regulator also stated that it is “actively” participating in international discussions regarding global standards for national cryptocurrencies, and that the next step will be to assess their impact on the Brazilian economy.
“After establishing general guidelines on the desired characteristics of digital real, open discussion with stakeholders will open up use cases and improve our understanding of the potential of government cryptocurrency in the particular case of the Brazilian economy.”
According to the bank’s plans, digital real will work in parallel with cash and bank deposits.