- Brazil is awaiting the approval of a bill that will permit the issuance of the digital form of Real.
- Central Bank will have the supreme power in the creation of digital currency.
- However, savings in digital format will be considered a crime.
Recently, Brazil introduced a bill to regulate crypto in the country that will help issue the digital form of Real. The bill was presented on Tuesday by its author Aureo Ribeiro to regulate the Brazilian cryptocurrency market, which is at present under inspection by the Federal Senate.
The bill’s primary focus is the need and the permission to launch Brazil’s central digital currency (CBDC). If approved, the Brazilian monetary authority will gain permission to generate and direct Real currency in virtual form. In addition, it will also allow the issuance of national currency in the form of crypto, which will, in turn, be linked to the Brazilian Payment System. However, the conditions and constraints followed will be set by the National Monetary Council.
The author has also clarified that the Central Bank of Brazil holds the authority to create the digital currency, keeping in mind the dangers of Digital Real. In addition, the process of issuing Digital Real should be made transparent, and the population should not be kept in the dark about the risks and benefits of the same.
The new bill also mentions that savings in the form of a Digital portfolio fall under criminal acts as it goes against the economic policies in the pilot phase.