Digital real: BC wants to use tools like smart contracts for flexibility.

The Central Bank (BC) will hold this Tuesday (19) the online and open webinar “Issuance and Movement”, the fifth of the series about “The Digital Real”. Discussions will be on strategies for the creation, distribution, custody and destruction of the BC’s digital currency (CBDC).

Bruno Magrani, director of Institutional Relations at Nubank, will participate in this webinar. This is the biggest fintech in Brazil and one of the biggest fintechs in the world. And that, in addition, it is about to make its initial public offering (IPO) in the United States (USA).

Leandro Vilain, Innovation, Products and Services director of the Brazilian Federation of Banks (Febraban) will also participate in the webinar on the digital real. The institution has already set up a group to discuss the digital real.

In addition, there will be Márcio Garcia, professor at the Department of Economics at PUC-RJ. Rogério Lucca, head of the Banking Operations and Payments System Department, will moderate the event. BC will broadcast the webinar through its Canal no YouTube, from 11am to 12pm.

This Monday (18), BC’s inspection director, Paulo Souza, also stated that as the digital real will not have remuneration, “I think it is very unlikely that it will have a greater impact in terms of financial intermediation. I think the main decision (to be taken) was that”.

Digital real could be blockchain

Since there will be no remuneration on the digital real, this version of the currency will not compete with other funding products for financial intermediation, added the director. The statement came during the release of the semi-annual financial stability report in Brazil.

The institution will hold seven webinars on the digital real until November on various topics, such as decentralized finance, inclusion and security. For this, it brings experts and companies both from Brazil and abroad and discusses possibilities and potential risks. Thus, it discusses the possible design of the digital version of the Brazilian currency.

In these webinars BC has already indicated that it may adopt blockchain for the digital real, as it works with the possibility of adopting decentralized finance (DeFi).

One of the main characteristics of the digital real could be the possibility of offline transactions. So, this means allowing what paper money allows today, by not relying on the internet. Thus, it will allow all Brazilians to be able to use it, that is, it will guarantee financial inclusion in these operations.

This view on the role of including offline operations in the digital real was common among the participants of the third webinar on digital currency held by the Central Bank (BC) in September.