The Central Bank of Brazil (BCB) is anticipating a significant migration towards digital payments.
This is the opinion of BCB director João Manoel Pinho de Mello who recently spoke about the growing momentum of digital payments and currencies, including the potential to issue a digital real based on the country’s national currency.
Mello believes the move towards digital payments will happen via the implementation of central bank digital currencies (CBDCs), according to local media outlet, Valor Economico.
In Mello’s opinion, CBDCs would be able to bring greater efficiency and transparency to payments in both the retail and the financial systems.
He drew attention to the fact that digital currencies are capable of reducing cost as well as time in cross-border payments, but he said that governments will need to proceed with extreme care in how they design the digital currencies.
Potential risks have to do with breaking data protection laws, becoming susceptible to cyber-attacks or seeing an increase in bank runs. However, the BCB is already close to being able to launch a CBDC. This should happen within the next three years, in the bank’s estimatimation.
Digital currencies are already a part of the entertainment economy with many excellent casinos such as Bitcasino.io, 1xBit and FortuneJack already accept digital currencies to fund player accounts.