Roberto Campos Neto told the participants of Blockchain Rio that the main obstacle in the implementation of the central bank's digital currency (CBDC) is the problem of scaling.
"The main question was how to ensure the adoption of the digital real across the country, without compromising the confidentiality of the participants in the calculations. The dilemma is that there is no solution yet: how to simultaneously ensure the decentralization, programmability and privacy of CBDC. Because digital registries and blockchain technologies are good in terms of transparency and speed, but have privacy issues," explained the president of the Bank of Brazil.
Campos Neto clarified that from the point of view of technology, the scaling problem has not yet been solved. However, the head of the Central Bank makes optimistic forecasts: in the near future, a way out will be found. There are several experienced solutions to scalability problems based on the Digital Ledger privacy platform: the head of the Central Bank of Brazil added.
Campos Neto stressed the importance of integrating tokenized digital market assets into the operations of traditional banks.
"The Central Bank of Brazil does not intend, like some countries, to isolate banks' balance sheets from digital assets. We think, on the contrary, tokenization should be the next step in the development of the national banking system. By understanding and accepting tokenization, banks will better cope with the risks of crypto assets. And we believe that this evolution is inevitable," concluded Campos Neto.
Tokenization of traditional banking instruments makes it possible to significantly accelerate the activities of credit and financial institutions at lower operating costs, believes the head of the Central Bank.
In the first quarter, the Central Bank of Brazil announced the involvement of the French company Giesecke+Devrient (G+D) in cooperation to jointly test the possibility of payments in digital reales in the absence of the Internet.