The race toward central bank digital currencies (CBDCs) is tightening, with Brazil reportedly looking to launch one by 2022 in a bid to help digitize payments. And although it’s not a winner-take-all competition, central banks first out of the gate might prove instructive to those who follow — particularly when it comes to new use cases or the goal of democratizing banking and digital payments.
Roberto Campos Neto, president of Brazil’s central bank, said his country’s new digital currency will work in concert with its new instant-payments system.
“To have a digital currency, you need an instant payment system that is efficient and interoperable; an open system where you can create competition; and a currency that has credibility, is convertible and international,” he said, as per local media. “After that, I think you have all the ingredients to have a digital currency. We think we will have it in 2022.”