The future of personal finance was discussed by Roberto Campos Neto, president of the Bank of Brazil, in relation to the digital real, the central bank’s digital currency (CBDC). While demonstrating a “super app” with PIX (a payments network) capabilities and connectivity with other stablecoins that were already on the market, Neto demonstrated the idea of “open finance” during the event.
Potential Direct Links Between Cryptocurrencies And Digital Real
The digital real, the projected Brazilian CBDC, is ostensibly expanding to have more and more capabilities. The Bank of Brazil’s president, Roberto Campos Neto, demonstrated the idea the bank has for the final form of the currency. Campos Neto shared the ideas the organisation has for the currency on November 25 at a web event. under the “open finance” name.
This concept involves fusing traditional, decentralised financial organisations and structures with the still-developing digital world. A “super app” that will enable users to store both stablecoins and the CBDC was also displayed at the event, demonstrating the system’s integration with the currently operational PIX payments network.
Campos Neto added clarifications to the app mockup:
This is essentially a preview of what this integration will be like. Instead of having numerous apps from various banks on your smartphone, you will have some sort of integrator.
The app will give users a comprehensive overview of all of their savings, whether they are traditional or crypto-based, in a single location.
An Attempt at Digitization
Since the central bank and other institutions are still testing the various implementations and features this new coin would have, there is no expected completion date even though the digital real concept has been in development for a while. Campos Neto asserted that as the nation moves toward monetary digitization, the currency will serve as a bridge to decentralised finance.
Campos Neto elaborated on this by saying:
The bridge to the defi environment is the digital real portion. We are integrating the banking system with the digital world. Different central banks are acting in the opposite way. In reality, they are driving digital banking away.
Contrary to what Campos Neto claims, numerous central banks are now testing a variety of digital currencies. The adoption of a digital euro is now being studied by the European Union, and regulations are anticipated soon. A proposal to do away with physical money has gained popularity in Argentina, and the Federal Reserve Bank of New York is also testing an interoperable network of central bank wholesale digital money.