The Central Bank of Brazil’s director, Fabio Araujo, has admired the technological properties of Bitcoin (BTC) classifying the crypto token as a financial revolution responsible for raising exclusive significant products. In addition to this, Araujo elaborated on the importance of Bitcoin in the provision of rising to the idea of Web3 persuading several jurisdictions to conduct research projects on their central bank digital currencies (CBDCs), as reported on 4th August.
Apart from that, the director disclosed that presently the bank has been focusing on the properties of Bitcoin throughout the previous decade. As per him, they commenced their efforts with Bitcoin’s launch in 2009 with the facilities and technology related to the distributed database as well as Web3’s creation. He mentioned that the application of Bitcoin provides a Proof-of-Work consensus mechanism that is basic for Web3-related services.
Bitcoin’s Use as another Currency
Nonetheless, Araujo dismissed the probability for BTC to be utilized in the form of currency. He referred to volatility as the prominent drawback of the primary crypto token. While discussing this, the director made it clear that a central bank digital currency is required because it eradicates the volatility case as well as operates as a solution for payments. He moved on to say that despite utilizing the technology that is compatible with crypto, a CBDC does not count as a crypto asset.
He was of the view that a CBDC works just like the local currency of the country. He described that the organization is pursuing CBDC with tangible findings to be witnessed in 2024. A noteworthy thing is that Araujo’s status is that of the head of the CBDC project of the central bank. He emphasized that the likely availability of the project’s pilot phase will occur in the coming year.
The unique properties of Ethereum
Moreover, the smart contract facility as well as the decentralized finance (DeFi) compatibility of Ethereum (ETH) is the chief technology that is assistive in advancing the financial sector. eventually, the director specified that the bank intends to announce financial goods that take into account the features offered by stablecoins, Web3, DeFi, Ethereum, and Bitcoin.
Particularly, the country keeps on tracking the increasing crypto investors as diverse players are shaking the market control. For example, Nubank (a Brazil-based bank supported by Warren Buffett) reached 1M crypto consumers nearly a month following it introduced the service.
This post first appeared on: CryptoCy News