Brazil’s Digital Real to Integrate with DeFi

The Central Bank Digital Currency (CBDC) has been a topic that has been talked about a lot lately and that every country is working on. One of the countries that made great strides in CBDC in 2022 was Brazil. Roberto Campos Neto, Director of the Central Bank of Brazil, made a speech at an event on December 13, 2022, stating that there is no exact date for the digital real, but it is likely to come out in 2024. Neto said:

“I want the CBDC to come out in 2024. There are still more hurdles ahead of us to reach this calendar. However, our target is 2024.”

Campos Neto has announced that this goal is possible if digital real testing starts in 2023. However, Neto also stated that there are many obstacles on the target and the completion time of the project may be disrupted.

Campos Neto also referred to the integration of the digital real with other traditional and decentralized finance-based structures. Neto also said that one of the bank’s tasks is to create a model that includes a digital real with Open Finance that encourages the sharing of data, products and services among regulated institutions.

This means that Brazilian citizens will be able to manage all their financial assets with a single application. In this application, digital real, tokenized banking deposits and crypto money assets will be visible. Campos Neto had previously announced that he wanted to make an application to this concept in November 2022.

Campos Neto also explained that the digital real can be integrated with new structures and assets thanks to its programmable feature. He also stated that it can be integrated with systems such as the payment bridge method, such as the Pix system in the Web3 ecosystem. Campos Neto said:

“It’s very important that the digital real is programmable so you can add new functionality, in theory you can put a smart contract on top of that in Pix.”