Brazil’s G20 Presidency to Focus on CBDC Benefits

Brazil, as the new president of the Group of Twenty (G20), is set to focus on the potential of digital currencies in enhancing global financial systems. Roberto Campos Neto, the president of the Central Bank of Brazil, is leading this initiative. He believes digital currencies could significantly reduce the costs of international transactions. Brazil plans to use its G20 presidency, which began on December 1, to promote the digital currency agenda and explore how major economies can modify their regulations to benefit from these innovations.

Campos Neto highlighted the advantages of digital currencies at a recent event. He emphasized their ability to lower transaction costs and streamline international transfers. As reported by Valor Economico, he said: “Digital currencies can greatly reduce the costs of international transactions. The G20 will work to improve the settlement and governance of international transfers.” He pointed out that programmability, a key feature of digital currencies, could lead to more efficient financial transactions by enabling scheduled asset purchases and payments.

Another important aspect Campos Neto discussed is the role of user data monetization in reducing the costs of using digital currencies. He sees this technology as a game-changer that democratizes the financial sector.

Currently, Brazil is testing its own digital currency, named drex. This currency is designed with advanced programmability, allowing for automated transactions in assets like cars and real estate. Campos Neto has previously indicated that drex could be launched in 2024.