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The digital real will soon be in your pocket as a new financial ally. In this article, you'll learn all about the new currency: what it is, its benefits, where to use it, and how to buy it. Check it out!
It's no secret that digital payments have invaded commercial transactions.
But have you ever thought if our country had a kind of digital currency that could be used worldwide?
Or, the possibility of your car making toll and parking payments automatically?
This will soon be possible thanks to the digital real – an alternative currency with the same value as the physical real.
The launch is expected to take place in 2024 and virtual payments will become a faster, more technologically advanced procedure.
Want to learn more about this new feature? Keep reading to learn all about it:
- What is the digital real and how does it work?
- What are the advantages?
- How to buy digital real and where to use it?
- Will this be the end of physical money?
- Find out why the digital real will soon be in your pocket!
What is the digital real and how does it work?
We've been hearing a lot about this topic recently, but do you know exactly what the digital real is and how it works?
At first glance, the object in question is a Brazilian virtual currency created by the Central Bank. In technical terms, it's a CBDC—Central Bank Digital Currency. a kind of alternative currency with the same value as paper money.
Another important point to highlight is its functionality.
Because, contrary to what many people think, we are not talking about a new cryptocurrency, but rather an alternative currency, similar to the real that we use as a form of payment on a daily basis.
However, the real digital currency cannot be withdrawn in physical bills, since the consumer actually receives codes issued by the Central Bank with the amounts.
Indeed, according to an interview published on CNN, the Central Bank says that:
Pretty practical, right? So, will it be used similarly to PIX, for example?
Yes, almost!
After all, the government's primary intention is that the Brazilian virtual currency is not used solely as an investment.
But also as a form of payment in commercial transactions and in smart contracts.
What are the advantages?
In addition to making everyday life easier for Brazilian families, real digital brazil also has other advantages, such as:
#Security
One of the first benefits is the security of cryptocurrencies, since their issuance and distribution to banks is carried out exclusively by the Central Bank of Brazil.
#Globalization
The second advantage of the digital real is that the currency can be used anywhere in the world, further increasing global purchasing power, whether traveling or making international purchases.
#Rople reduction
Since printing is not permitted, paper production will be reduced. This will also reduce the spread of diseases, as has happened and continues to happen with COVID-19.
#Inhibition of money laundering and stimulation of competition in the virtual environment
Since the Central Bank will have access to the codes, another factor that the use of real digital currency chain is the inhibition of money laundering.
At least, that is the expectation.
On the other hand, competition and innovation in digital currencies also come into play with the scenario of the launch of the Brazilian virtual currency.
How to buy digital real and where to use it?
Currently, what is known is this: To purchase the digital real, the citizen will need to have a virtual wallet in the custody of an agent authorized by Bacen.
Therefore, through the wallet, it will be possible to make smart contract transactions.
In other words, the citizen can draw up a digital contract and allocate the values of the real digital Brazil.
Another way to use it is to link the digital wallet to machine systems with artificial intelligence.
Take advantage and also read: “Learn what digital currencies are and where to buy them safely”
Like this, according to the words of the interview given by the Central Bank to CNN, the consumer can program a refrigerator to automatically shop for an item that is out of stock.
Or, program a car to pay tolls and parking directly with the real digital currency, without worries.
Will this be the end of physical money?
Generally speaking, the arrival of digital currency does not represent the end of physical money, but rather its extension.
And based on the interview mentioned in the previous paragraphs, the intention is to use the virtual modality in digital contracts. In other words, the currency will not replace physical money.
Furthermore, according to a grade given to Exam, initially, it won't be possible for all Brazilians to exchange their banknotes for digital currencies, as this would lead to a major collapse of the banks.
Even so, as we can see in our reality, with each passing year online shopping and virtual payments grow exponentially.
In fact, to give you an idea – in 2020 alone, cash was used in only 20.5% of commercial transactions. The data comes from a report by The Global Payments Report 2021.
Find out why the digital real will soon be in your pocket
The Brazilian digital currency is coming and soon this new feature will be in your pocket, making your everyday business transactions easier.
The latest news is that by April, several possibilities will be tested for use in the Financial and Technological Innovations Laboratory in partnership with Fenasbac – National Federation of Central Bank Employee Associations.
In the words of Rodrigoh Henriques – Fenasbac's financial innovation leader – on CNN, the expectation is that the launch will take place in our country in 2024.
In fact, according to the Bank for International Settlements, 86% of central banks around the world are researching the potential of these types of currencies. And within this group, 60% are experimenting with the new technology.
In fact, to this day, Nigeria was the last country to launch a CBDC: the e-Naira.
Furthermore, China is already several steps ahead of us, and digital currency transactions represent a value of 300 million dollars.
Conclusion
Technology and innovation are our present and our future! And the arrival of the digital real further expands and facilitates commercial transactions in our country and around the world.
We've seen that the advantages are immense, as digital currency isn't limited to the investment world and has the security of the Central Bank, unlike cryptocurrencies.
In addition, one of the main promises is also to inhibit money laundering, since Bacen will have full control and access to all codes.
Despite being a novelty, many countries are already studying the idea and China has already launched it, resulting in a turnover of 300 million dollars.
If you've already joined PIX and liked digital payments, we're sure you'll love it. real digital Brazil!
Want to stay updated? Click the button below and learn all about it. “Digital Account with Credit Card”.
