Brazil begins CBDC pilot project with public use for 2024: Report

Brazil begins CBDC pilot project with public use for 2024: Report

The central bank of Brazil has started to test its project for digital central bank currency (CBDC), which is expected to promote a stronger inclusion of individuals in the financial sector.

The Thai government is also ready to offer tax relief for companies that output digital brands for investment purposes.

Brazil starts CBDC pilot project

According to Reuters on Monday (March 6, 2023), the coordinator of the CBDC project at the Brazilian central bank, Fabio Araujo, said that widespread use of the digital real real after the pilot project was expected in 2024. Part of the test phase includes the purchase and sale of federal bonds by individuals and the subsequent evaluation.

The report also said that the Brazilian CBDC will be a blockchain-based payment that supports retail transactions. This payment is covered by the customer's deposits in his bank accounts. In this way, banks are not intermediated because they will exist within the CBDC matrix. As such, you will not lose your credit source.

In a statement by Araujo it says:

"This environment reduces the costs and brings the possibility of financial inclusion for people. They have services that are very expensive, such as repo businesses that are only reserved for banks today, but which could be carried out by everyone with a technology based on digital currencies."

The central bank board added:

"This could reduce the credit costs, the costs for improving the capital return. There is great potential for new service providers, fintechs that democratize access to the market and offer new services."

araujo said that the proposed CBDC initiative was not intended as an interface to digital payment rails, since Brazil's existing payment system has already met this purpose.

In addition to Brazil, other countries also carry out CBDC pilot projects. As already reported, Cryptopotato plans to start Japan's Apex Bank in April 2023 with experimenting with your CBDC project. India's digital Rupien pilot project for retail, which started in December 2022, has taken 50,000 users and 5,000 dealers on board.

In the United States, however, the representative Tom Emmer recently introduced a bill to stop the issue of a digital dollar.

Thailand's crypto tax relief

In other messages, Thailand does not use corporate tax and VAT (VAT) for companies that output digital tokens. According to a Reuters report, digital token investments will serve as an alternative to creating capital for companies in addition to existing traditional methods such as bonds.

a government spokeswoman, Racada Dhnadirek, said that the tax relief could cost the Thai government 35 million baht ($ 1 billion), while it explained that the country could see investment token offers worth 128 billion Baht in the next two years.

The latest development comes with Thailand recently applying a strict official supervision in the crypto industry. In September 2022, the state's Securities and Exchange Commission (SEC) prohibited the crypto company active in Thailand in offering staking and rental services for cryptocurrencies. At the beginning of the same month, the Thai SEC led strict regulations for crypto advertising.

After the collapse of the former crypto exchange giant FTX, Thailand's supervisory authority announced that it would introduce stricter crypto regulations to protect investors.

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