The President of the Central Bank of Brazil has announced that the country is currently making plans to launch its CBDC by the start of 2022.
Brazil is currently hoping to rival other countries involved in CBDC creation in the future as the President of the Central Bank , Roberto Campos Neto affirmed that the CBDC might be launched at the beginning of 2022.
The statement comes on the back of key moves made by the Central Bank to put a group together to study the potentials of launching CBDC. Neto also touched the new payment system, PIX, that will be used as the framework for paying digital assets.
Brazil set to create a new PIX payment system before the end of the year
According to the President, the country has been working tirelessly to create the framework and it will be launched by the end of November. The bank has also planned to launch a new Open Banking Initiative at the end of the year.
To be able to launch an effective CBDC, the country needs to have a fast payment system that is easy and efficient. The new PIX that is about to be unveiled will rival cross border payments giants, Ripple and the involvement by the premier bank in the country will give it an edge over the payments system.
China still leading other countries in the creation of CBDC
Even though Ripple has been making moves to enter and take over the Brazilian market in terms of cross border payments, the new PIX will prove to be a difficult opposition to the Ripple owned payment system.
Even though the bank has earmarked 2022 as the year to launch the CBDC, it is still making small progress in context to other countries that have embarked on CBDC creation. China is still leading the pack as the country is presently testing the new currency in a wider region. Presently, they have moved the testing into key regions including Beijing.