Fabio Araujo, director of the Central Bank of Brazil, has praised the properties of Bitcoin, saying that it is a financial innovation that uses new technologies. For Araujo, Bitcoin was the catalyst for what is now known as Web3. At an event, Araujo also commented on the state of digital real development, stating that his organization hopes to add smart features to the currency.
Central Bank of Brazil Praises Bitcoin as Web3 Tech Pioneer
More and more central banks around the world are dealing with the topic of cryptocurrencies and how to innovate to keep up with these technologies. Fabio Araujo, director of the Central Bank of Brazil, praised Bitcoin as a financial innovation that gave rise to the Web3 movement and talked about how digital real, the still-under-investigation central bank digital currency (CBDC), could have programmable features. .
In an event promoted by the Sao Paolo Business School, Araujo he stated:
We began to accelerate this in 2009, with the launch of Bitcoin, with distributed database technology that facilitates the creation of the Web3. The Bitcoin application provides the Proof of Work solution, which is fundamental to the services that Web3 provides to the population.
In addition, Araujo noted that this technology preceded Ethereum, which includes smart contracts that add more possibilities to the financial system.
A real programmable digital
Araujo also touched on the subject of digital reality, hinting at the possibility that it has intelligent capabilities. In a set of slides presented at the event, the central bank’s digital currency is shown to be linked to Web3 elements such as digital assets, tokens, Internet of Things (IoT) protocols and offline payments.
The central bank chief also made a clear distinction between the digital real and other crypto assets like bitcoin. Araujo said:
Although CBDC uses the technology that supports crypto, CBDC is not a crypto asset. The CBDC is an expression of the Real within the environment in which cryptocurrencies operate, just as the Real does not compete with listed assets.
Araujo explained that the digital reality was an opportunity to bring smart features to bridge the existing gap between traditional finance and Web3 protocols. Although the bank has done various experiments with the concept of the digital real, the decision to launch or abandon this project will be made in 2024.
What do you think of the Central Bank of Brazil’s stance on Bitcoin? Tell us in the comments section below.
Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price surge occurred in December 2017. Having a background in computer engineering, he lives in Venezuela and is affected by the cryptocurrency boom at the level social, offers a different point of view. about crypto success and how it helps the unbanked and underserved.
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