In a few years, we will see cash become part of history and finally be replaced by digital currencies.
This point of view was expressed by João Manoel Pinho de Mello, who is the director of the Central Bank of Brazil. People and companies themselves will begin to switch to such forms of payment for goods and services since they are much more convenient.
De Mello spoke at a conference on digital currencies and stated that Brazil is moving towards an electronic version of the real (CBDC). However, the regulator will not rush to implement the token.
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Among the main advantages of launching a CBDC, the head of the Central Bank highlighted the expansion of the availability of financial services, a reduction in operating costs, and the simplification of cross-border payments. According to him, the national digital currency of Brazil should appear approximately in three or four years.
The official also noted: "We understand that the use of CBDC will take place in a situation where it can increase the efficiency and transparency of transactions in terms of its use in the financial and payments industry."