Brazil is planning to print new R$200 banknotes to ease the effect of COVID which has raised numerous questions about Bitcoin adoption
With moves ongoing by several countries across the world to transition from the coronavirus pandemic period, Brazil is aiming to print new banknotes.
According to a report by news outlets, Reuters, the country is planning to print the new R$200 banknotes which would go into circulation before the end of August. If this new development should go as planned, the new note would go into the history books of Brazil as the highest ever currency ever printed.
Presently, the new currency would be worth around $34 which would mean that the country’s currency is still towing the path of a loss against the Dollar.
Printing of new R$200 banknotes has generated massive difference of opinions
Analysts have said that the new R$200 banknotes would register a loss against the Dollar when it comes into play. The cost of printing the new currency would be one of the highest in the country.
Beforehand, the R$1 held the record for the currency with the highest printing fee as it was printed with R$0.34 per coin. With this in mind, the country has announced that a unit of the new R$200 note will be printed using R$0.325.
According to the statement, 450 million units of this note will be printed with the government planning strategically to send them into the economy.
Experts say the use of digital assets will bring major advantages
With the news of the printing of the new notes, the idea of replacing it with Bitcoin has generated massive questions. According to experts, Bitcoin has a known market cap, and its issuance will boost the economy and help the citizens save massive wealth.
As a result of the known period of issuance, the population would be able to rebalance their assets before the new currencies go into the economy.
Another possibility is that the cost attached to printing the new currencies would be eliminated if the Brazilian government decides to use Bitcoin. Another advantage of using Bitcoin is that there would be no fake in circulation, unlike previous fiat currencies.
