Brazil's central bank is set to launch a central bank digital currency (CBDC) in 2024, with a closed pilot program scheduled for 2023 with a group of banks, Reuters reports, referring to the bank's president Roberto Campos Neto.
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Campos Neto said that the government-backed digital currency should not disturb monetary policy or hurt banks' balance sheets, adding that if the digital currency is actually a tokenized deposit, it "inherits all the regulation that already applies to deposits." He also stressed that tokenized deposits should improve the banks' settlement and funding costs.
The announcement comes after the Brazilian Chamber of Deputies approved a bill to regulate the crypto industry. Although the Senate approved the document in April, since June it has been in the lower House of Parliament.
The document, which is authored by deputy Aureo Ribeiro, introduces a new type of crime: fraud using digital currencies, for which two to six years in prison are provided in addition to a fine.
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