The Central Bank of Brazil has formed a working group to study digital currencies, The Block reports. Groupwill examine the implications of the central bank's digital currency issuance.
According to the Central Bank, online payments are developing atover the past years, and the digital currency will allow the residents of the country to completely switch to cashless payments. In addition, digital real will help eliminate the costs associated with issuing and maintaining banknotes and coins. According to the Central Bank's estimates, the cost of providing citizens with paper money is 90 billion reais ($ 16 billion) per year (about 1-2% of the country's GDP).
An inter-agency team of 12 experts will investigate the economic as well as social risks and benefits of issuing CBDC. Central Bank spokesman Rafael Sarres de Almeida stressed:
"It is important to note that the group's approval does not mean that the central bank will becometo issue a digital currency."
Almeida also said that the main outcome of the working group's research should be "the answerThe CBDC will also be in the context of coexistence with Pix Instant Payment System, which is due to be launched before the end of the year.
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