Fabio Araujo, director of the Central Bank of Brazil, extolled the properties of Bitcoin, saying that it is a financial innovation using new technologies. For Araujo, Bitcoin was the catalyst for what is known today as Web3. At an event, Araujo also commented on the state of digital real development, saying his organization hopes to add smart features to the currency.
Brazil’s Central Bank Praises Bitcoin as Web3 Technology Pioneer
More and more central banks around the world are grappling with the issue of cryptocurrencies and how to innovate to keep pace with these technologies. Fabio Araujo, director of the Central Bank of Brazil, hailed Bitcoin as a financial innovation that gave birth to the Web3 movement and explained how the digital real, central bank digital currency (CBDC) which is still the subject research, may have programmable functionality. .
At an event promoted by Sao Paolo Business School, Araujo said:
We started accelerating this in 2009, with the launch of Bitcoin, with a distributed database technology that facilitates the creation of Web3. The bitcoin application brings the Proof of Work solution, which is a fundamental thing for the services that Web3 brings to the people.
Moreover, Araujo pointed out that this technology preceded Ethereum, which includes smart contracts that add more possibilities to the financial system.
A programmable digital real
Araujo also touched on the subject of the digital real, hinting at the possibility that he has intelligent abilities. In a series of slides presented at the event, central bank digital currency is shown as being tied to Web3 items, such as digital assets, tokens, Internet of Things (IoT) protocols, and offline payments. line.
The central bank director also made a clear distinction between digital real and other crypto assets such as bitcoin. Araujo said:
Even though CBDC uses technology that supports cryptography, CBDC is not a crypto asset. The CBDC is an expression of the Real within the environment in which cryptocurrencies operate, in the same way that the Real does not compete with listed assets.
Araujo explained that digital real was an opportunity to bring smart functions to bridge the gap between traditional finance and Web3 protocols. While the bank has conducted various experiments around the concept of digital reality, the decision to launch or abandon this project will be taken in 2024.
What do you think of the Central Bank of Brazil’s position on Bitcoin? Tell us in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.