Brazil’s quest for a digital real has taken a step further, this time with the formation of an intergovernmental study group. The group will investigate the implications of a central bank digital currency (CBDC) on the country’s economy, the risks posed and the benefits the country could gain from the use of a digital currency.
In its official announcement, the Banco Central do Brasil said the group will have 12 members, tasked with conducting a worldwide study on CBDCs. The regulator believes that a digital real could greatly improve the existing payment systems in the country and beyond.
The group will study the scope of a digital real, its benefits to the society and the challenges it could pose to the country’s economy. It will also study how the CBDC will be affected by cybersecurity risks, regulatory frameworks and data protection laws.