Top cryptocurrency news: Director of the Central Bank of Brazil praises Bitcoin as financial innovation, Discusses Programmable ‘Digital Real’
The Central Bank of Brazil's Director, Fabio Araujo, has lauded the features of Bitcoin, calling it a financial innovation based on modern technology.
According to Araujo, Bitcoin was the spark for what is now known as Web3. Araujo also remarked on the status of digital real's development during an event, saying that his firm aims to add smart functionalities to the currency.
Central banks all around the world are grappling with the issue of cryptocurrencies and how to innovate in order to stay up with these technologies. The Central Bank of Brazil's director, Fabio Araujo, praised Bitcoin as a financial innovation that gave rise to the Web3 movement and discussed how the ‘digital real’ (the central bank digital currency (CBDC) that is currently under examination) may have programmable capabilities.
Araujo noted at a Sao Paolo Business School event that we began to accelerate this in 2009, with the launch of Bitcoin (BTC), using distributed database technology that supports the creation of Web3. The Bitcoin application provides a Proof of Work solution, which is essential for the services that Web3 provides to the public.
Furthermore, Araujo stated that this technology came before Ethereum, which incorporates smart contracts that expand the financial system's capabilities.
Araujo also mentioned the digital real, implying that it may have smart capabilities. The central bank digital currency is demonstrated to be related to Web3 aspects such as digital assets, tokens, internet of things (IoT) protocols, and offline payments in a set of slides given at the event.
The central bank's head also established a clear distinction between digital real and other crypto assets such as bitcoin. Araujo stated:
“Despite the fact that central bank digital currency (CBDC) employs crypto-supporting technologies, it is not a crypto asset. The CBDC is a manifestation of the Real in the context of cryptocurrencies, just as the Real does not compete with listed assets.”
According to Araujo , the digital real was an opportunity to provide smart functionalities to bridge the current gap between traditional financial and Web3 protocols. While the bank has conducted several trials concerning the notion of the digital real, the decision to launch or cancel this project will be decided in 2024.
