The head of the Brazilian Central Bank, Fabio Araujo, has applauded Bitcoin’s (BTC) technical features, describing the asset as a financial innovation that has generated new necessary items.
Livecoins stated on August 4 that Araujo pointed out Bitcoin’s importance in spawning the Web3 idea and prompting most authorities to begin exploring central bank digital currencies (CBDC).
Intriguingly, the director said that the bank started investigating Bitcoin’s qualities more than a decade ago.
Bitcoin as a form of money
However, Araujo ruled out the use of Bitcoin as a currency, noting the asset’s volatility as a disadvantage. In this instance, the director indicated that CBDC is necessary since it removes the situation of volatility and functions as a payment solution.
He acknowledged that the organisation is investigating the CBDC, with factual findings anticipated in 2024. Notably, Araujo is the leader of the CBDC initiative at the Brazil central bank, and he has said that a pilot project would likely be accessible in 2023.
Ethereum’s unique qualities
Moreover, Araujo lauded Ethereum’s (ETH) smart contract functionality and capacity to enable decentralised finance (DeFi) as a crucial tool for driving innovation in the financial industry.
As a result, the director announced that the bank intends to launch financial solutions that include Bitcoin, Ethereum, DeFi, Web3, and stablecoin characteristics.
Notably, Brazil continues to see an increase in the number of crypto investors as market participants vie for dominance. For instance, Finbold stated that Brazilian challenger bank Nubank, funded by Warren Buffett, reached one million bitcoin customers within a month of introducing the service.
Interestingly, the bank expected to reach the benchmark in one year. Elsewhere, Bitso, a cryptocurrency exchange located in Mexico, said it had achieved 1 million customers in Brazil.
Also Read: Different Crypto Companies Have Planned PoW Ethereum Forks
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