Digital Real to Be Used by Banks in Brazil as Collateral to Issue Their Own Stablecoins

According to statements from the president of the Central Bank of Brazil, Roberto Campos Neto, the Brazilian central bank digital currency (CBDC), the digital real, will be more of a wholesale asset rather than a public retail-focused token. Campos Neto also indicated that private banks in the country would be allowed to issue their own stablecoins. They will be collateralized with digital real deposits.

Digital Real Won't Be Retail Oriented

Brazil is soon issuing a CBDC that won't be like other CBDCs, such as the digital renminbi. According to Roberto Campos Neto, president of the Central Bank of Brazil, it will only have a wholesale purpose and no retail purposes at all. He shared this information at a crypto summit hosted in Rio.

Talking about the projected uses of the digital real, Campos Neto stated, "Banks will be able to issue stablecoins on their deposits and will develop a technology for that, they will have to invest because they can make gains. And once they have that developed, the protocols for issuing stablecoins on deposits will basically be the same thing as for monetizing various other digital assets."

Campos Neto also stressed digital real would have a very unique focus. It will have the goal of monetizing assets without harming the credit functions of private banks and will be using them as collateral.

Tokenization and CBDC Disarray

Campos Neto included tokenization as one of the possible processes where a CBDC can help with improvements. Regarding mortgages, Campos Neto said implementing a tokenization model could make paying or getting a reverse mortgage simpler, reducing fees and waiting times. It can also help simplify the paperwork.

Campos Neto also criticized the disorder and lack of coordination that central banks have experienced in the process of designing their respective CBDCs. He stated, "When I meet with other central banks, I see that one is trying to develop a decentralized system, and another talks about automating a multi-tiered payment system… If you have development in this uncoordinated way, it will never be better than a crypto platform that is centralized."

NFTs Can Help Save the Amazon

Believe it or not, NFTs might play a key role in saving the Amazon rainforest. In March this year, a Brazilian company Nemus started the process of selling NFTs as a new way to finance the conservation of the Amazon rainforest. It owns 410 square kilometers of the rainforest. On the first day of the process, Nemus successfully sold 10% of an initial offering of tokens for 8,000 hectares.

The proceeds from that sale have been kept aside to be used for tree preservation, promoting sustainable development, and regenerating the areas that are already cut.

The buyers of NFTs can sponsor the preservation of specific areas and tracts of the forest without needing to own them. They will also get a piece of artwork of an Amazonian plant or animal which is created by Concept Art House.



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