Cryptocurrency networks can be used in financial intermediation in the future, says BC president

The president of Brazilian Central Bank (BC), Roberto Campos Neto, once again praised the underlying technology of cryptocurrencies, the blockchain.

During his presentation at an event promoted by the International Monetary Fund (IMF) in Washington, Campos Neto said that the networks and protocols of digital assets can be used in financial intermediation in the future, as reported by Valor Econômico.

“People focus a lot on the asset, but the beauty of it is the ‘network’ being created with the protocols. They have good features that can be used and that will change financial intermediation in the future,” he said.

Cryptocurrency Network

This is the second time that the president of the Brazilian monetary authority highlights what he calls the “network” of cryptocurrencies.

In May of last year Campos Neto stated that discussions on cryptocurrency regulation were irrelevant.

According to him, the digital assets themselves are not important, what mattered is the “network” involved. That is, the development of the protocols on which each crypto asset is based.

It is clear that the executive has changed his mind about the regulation of crypto-assets that has advanced from Brazil. In August 2021, he reported that the BC was debating the matter with the Securities and Exchange Commission. In addition, there is a bill that intends to establish some guidelines for the sector in progress in the Federal Senate.

Digital Real

Also during his speech in Washington, Campos Neto spoke about the implementation of Pix and the process of issuing the Brazilian digital currency (CBDC), Real Digital:

“First we needed an instant payments system, the Pix project was fast. We are also making the digital currency, which is going to have another role,” he said.

This April, the head of the BC reaffirmed that the Real Digital pilot will be launched later this year, more precisely, in the second half of the year.

Furthermore, he reported that the CBDC will be based on the Reservation Transfer System (STR), “heart” of the Brazilian Payments System. It is in the STR where the final settlement of all financial obligations in Brazil takes place.