• Brazil seems well-prepared to roll out its CBDC along with a few initiatives to make its economy more crypto-friendly and more sustainable.
• While the initiative is plausible, it has to be seen how the rest of the world takes it. 

In association with the BRICS group, the Brazilian leaders have been vocal about de-dollarization and a new order that brings more equality among nations. And now, it seems that the nation has taken some serious initiative on that front. Brazil’s Central Bank, the Banco Central do Brasil (BCB) has revealed its plans for CBDC launch. 

Launching multiple programs

The bank recently released a statement telling the sequence of events that would take place before the rollout. Also, it said that it would evaluate the possibility of tokenized assets that could be deployed in different domains and industries.

Divulging the details bit-by-bit, the BCB stated it plans to develop a digital real platform with the help of monthly webinars. 

These events will bring together fintech experts and partners on one platform. The distinguished members will discuss the CBDC and the results of its pilot. 

As per the reports, the pilot is now moving to its advanced stages and it is slated to launch the next year. It also roped in a large number of high-profile companies as its partner which includes Nubank, the crypto-keen neobanking unicorn. 

Furthermore, the bank is associating with some domestic firms as its consortium members. Till the month of November, the policy-making groups will meet to talk about the CBDC and tokenized assets.

Taking a holistic approach

The bank also plans to analyze the effect of distributed ledger blockchain technology on a number of services and markets.

Moreover, the central bank is seeking more involvement from its associates in the examination of credentials of the existing tokenized solutions.

Besides discussing the tokenized assets, the working group will also scrutinize the legal framework while considering the prospects of regulatory amendments and tokenization. Along with that, the group has also proposed a forum platform with market participants and other regulators.

According to the bank, transnational organizations, industry insiders, regulators along with academics will be invited to join the meetings and webinars. 

On some previous occasions, the bank has talked about rolling out a digital fiat. It is slated to be launched as a Beta version by 2024. 

Additionally, the bank has committed that its CBDC will be different from that of other nations. It has been designed to support domestic startups and many other ventures.

The BCB said that most nations are focusing on making their CBDC retail-centric. The Brazilian counterpart is rather paying attention to the growth of new and small businesses. It will cater to multiple sectors including financial services.

Conclusion 

While many nations are mulling over CBDC, some concrete steps are definitely a good sign. The initiative taken by Brazil can be seen in many ways. It could be a bid to wean off the US dollar for doing international trade. As the country has openly expressed its disgruntlement towards US hegemony, it would be interesting to see how it takes CBDC ahead.