May 28, 2023

Why 2 coins? The central bank reveals how Real Digital works

According to information from the Central Bank of Brazil, Real Digital, one of BC’s projects, is seen by many countries as an idea that will do well to improve the retail payments market. It will also financially include the population that does not have effective banking services.

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The agency’s system has caught the attention of many central banks around the world, which are preparing tests and exploring the potential of central banks. digital currency. Last Monday, the tenth, a lecture was held at the agency’s headquarters to explain how the entire financial system works.

The show was also shown on the municipality’s YouTube channel. There, it was detailed that the CBDC (Central Bank Digital Currency) will be an exclusive device for use between banks and other financial institutions. On the other hand, digital reality will target the entire population.

This means that it will be used just like current banknotes for the shop.

How will the real digital work?

In short, this will be a system with two currencies: a wholesale one, called the real digital currency, which will be used for interbank payments, and a retail currency, also known as real symbolism. It will be released by the market and will reach the final consumer.

It will be precisely this mechanism that will make transactions between people possible.

In practice, if person A wants to transfer value to person B, it is necessary for the bank to take the real digital currency and destroy the token. Thus, Person B’s bank will send the CCB to Person A who in turn converts the amount into digital currency and thus deposits it into the account.

Transactions will happen very quickly due to the technology used, the blockchain. According to Marcus Sokubera, Vice President of Open Market Operations, the next step is to add other assets, such as real estate, as well as conduct more testing of the consumer-to-consumer transaction process.